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Saturday, March 28, 2009

Is The Resurrection of Barack Roosevelt Obama Coming?

Has Timmy Geithner been listening to the title song’s chorus on the great new Van Morrison recording, Astral Weeks-Live at Hollywood Bowl? The chorus is, “I believe I have transcended.” Has the Man-From-Uncle-Goldman Sachs been transcended from the financial crime syndicate’s Trojan Horse into a higher plane where he now wears a big flowing red, white and blue cape as he does battle to rescue the US economy from eminent danger? Oohh Baby, I’m getting chills already!

University of Missouri and economics Professor Michael Hudson, Ph.D, wrote in How The Scam Works, brings up this example that if a “bank now offers $3 million to buy back mortgages [from another bank that believes they are sitting on a $10 million package of collateralized debt obligations that had been put together out of junk mortgages that] what the hell, the more they bid [up], the more they [can] get from the government. So why not bid $5 million. [If] the government-that is, the hapless FDIC-puts up 85% of the $5 million to buy this-namely, $4,250,000 [package, then] the bank only needs to put up 15%-namely, $750,000.”

“Here is the rip-off as I see it. For an outlay of $750,000, the bank rids its books of a mortgage worth $2 million, for which it receives $4,250,000. It gets twice as much as the junk is worth.”

“The more [money] the banks holding junk mortgages pay for this toxic waste, the more the government will pay as part of its 85%. So the strategy is to overpay, overpay, and overpay. Paying 15% is a small price to pay for getting the government to put in 85% to take the most toxic waste off your books.” What an incredible scam upon the taxpayer!!!

Mr. Karl Denninger of market-ticker.denninger.net wrote in his 3-19-09 piece called Bernanke Inserts Gun in Mouth, he said that “ The error in the hyperinflationist scenario is that without being able to couple price increases back into wages they are unsustainable-price increases instead of collapse demand [collapse of demand and falling prices]. If gasoline goes to $20/gallon you will buy less of it-a lot less-not because you want to, but because you simply don’t have the money. This in turn destroys the gasoline retailer and oil company’s operating cash flow, which in turn causes them to lay off more people. In a debt-laden economy the debt percentage (of GDP) continues to rise even as spending drops and a mad dash to try and redeem what debt can be repaid soaks up all available money.”

“The nightmare scenario that is staring us in the face, right here, right now isn’t hyperinflation. It is in fact a collapse of monetary systems driving demand for dollars through the roof in a crescendo of attempted redemption into collapsed (“no-bid”) asset prices-a demand that Ben [Bernanke] will not be able to meet, as the collateral backing those dollars will have been exchanged for toilet paper. Whether Bernanke holds all this trash on his balance sheet or manages to scam Treasury into exchanging it for T-bills, the result is the same-there is no collateral behind the Bucky [dollar] and as employment collapses no production to replace it will [be there] either.” This might be really hard to get your head around such an economic picture!

Columbia Business School’s Professor Joseph Stiglitz, Ph.D. and 2001 Nobel Prize winner in economics, wrote (Fiscal Plan Fails Both Markets and Taxpayers, 3-24-09, Project Syndicate) “Trickle-down economics almost never works. Throwing money at the banks hasn’t helped homeowners: foreclosures continue to increase. Letting AIG fail might have hurt some systemically important institutions, but dealing with that would have been better than to gamble upwards of $150 billion and hope that some of it might stick where it is important.”

I have said this all along--this is nothing but a trickle-down scam. Professor Stiglitz went on to say that the lack of transparency was the problem and will not offer a solution. By bribing hedge funds and private investors to buy up the bank’s bad mortgage assets will not result in the establishment of a true “market price” for these toxic bombs. Bank losses are already a fact, and now the taxpayers are being told this will be a win-win for just the banks and the government; but how is this a win for the taxpayers who will get stuck subsidizing an over-valued price? The taxpayer will see a loss: privatize the gains; socialize the losses.

University of Texas, LBJ School Professor of economics James K. Galbraith, Ph.D. wrote (This Crisis Is Way Bigger Than Dead Banks and Wall Street Bailouts, 3-25-09, Alternet.org) "In late 2007, the ratings agency Fitch conducted this exercise on a small sample of loan files, and found indications of misrepresentation or fraud present in practically every one. The reasonable inference would be that many more of the loans will default. Geithner's plan to guarantee these so-called assets, therefore, is almost sure to overstate their value; it is only a way of delaying the ultimate public recognition of loss. while keeping the perpetrators afloat. When a bank's insolvency is ignored, the incentives for normal prudent banking collapse. [Management] may take big new risks, in volatile markets like commodities, in the hope of salvation before the regulators close in. Or it may loot the institution--nomenklatura privatization, as the Russians would say--through unjustified bonuses, dividends, and options. It will never fully disclose the extent of insolvency on its own. [Management will likely engage in a] combination of looting, fraud, and a renewed speculation in volatile commodity markets such as oil. There is no chance that the banks will simply resume normal long-term lending. To whom would they lend? For what? Against what collateral? And if banks are recapitalized without changing their management, why should we expect them to change the behavior that caused the insolvency in the first place? The odd thing about Geithner's program is its failure to act as though the financial crisis is a true crisis--an integrated, long term economic threat--rather than merely a couple of related but temporary problems, one in banking and the other in jobs." One cannot help but believe that President Obama and Timmy Geithner are not afraid of the less powerful manufacturing CEOs, since they will force them to resign in exchange of government economic support, but are very afraid of the big time thieves deep within the financial industry's syndicate allowing them to keep their seats intact on the deck of the sinking ship.

Professor Paul Krugman, Ph.D. and 2008 Nobel Prize winner in economics said in an interview with Amy Goodman (Have Geithner’s Zombie Ideas Won?, Democracy Now!) that Geithner is “basically saying that, you know, there’s nothing really fundamentally wrong with our banking system; there’s just this stuff that’s ultimately backed by home mortgages, and if only we could get people to see that these things are really pretty decent assets, then the banks will be in fine shape. And that’s [troubling to me during this economic time]. You know, there’s an argument that says maybe they were somewhat underpriced, but to make that the centerpiece of your [Geithner’s] financial rescue plan is just—well…, it leaves me with a feeling of despair.”

So, what is wrong with President Obama? Why does he ignore Nobel Laureates and their opinions? Is he asking to be destroyed? Is he asking for the GOP to cannibalize him if this recovery plan calling for the financial crime syndicate to buy up over-valued toxic debt that they may use against the American people if they decided to throw back their catches?

You know the deal? The buyers of what are now being called “legacy assets” have a money back guarantee. They come up with 15% and if they only want to pay 25 cents on the dollar, Geithner’s taxpayers will subsidize the remainder of the seller’s offer price, which will likely be between 40-60 cents on the dollar.

If Obama falters and stumbles, or, at worst, falls flat-out he will be trampled by the GOP and many who changed their party affiliations to vote for him will retreat back to the Republicans. This will destroy the Democratic Party, which is already devouring their own. The trust will be significantly damaged and the circle (of Hope) will be broken!

Obama is risking his entire reputation on a weak and historically failed policy of trickle-down economics. One cannot help but believe that we are on the verge of actually losing our democracy. A Mussolini-like Republican is waiting in the wings. One has to believe that President Obama is being controlled by the very powerful forces within the financial banking crime syndicate to reuse Dr. Frankenstein’s horror machine to make sure the Ponzi monster lives on to trickle-down the fatal gruel in the form of Monster Mash.

J.P. Morgan manipulated the financial markets just before the stock market crash and the bank runs that led up to the Depression. He was responsible for the hundreds of bank failures, therefore it is not conspiratorial to believe that this bank syndicate dragon had been kept alive all this time and not slain generations ago.

I have a prediction that was seen in Madame Joy’s crystal ball. After she put herself under a hypnotic trace, the crystal ball lit up brightly spinning the gold and silver and cobalt blue colors which told this story. The banking industry is in a dilemma right now. They have backed their spankin’ cheeks too close to the hot and raging fireplace because they are now either going to have to put up or shut up. If they put up, then they will have to buy up the toxic “legacy assets” at the inflated and over-valued prices amounting to two to three times their actual market values. They may never be able to unload them unless they back out and dump them back on the taxpayer. This action may enrage the taxpayers for being dooped by the scam and call for nationalization, or force the banks to handle their own toxic debt bombs. The citizens will rally behind President Obama when he says that he bent over backwards to make a deal with the bankstas.

Now, if they shut up and don’t bite, then President Obama will look like the Emperor With No Clothes and the GOP will hammer him as they unleash the vulgar and despicable racist dogs on him. If the banking cartel decides to “shut up” then Obama will realize that the biggest crime syndicate set him up to look ineffectual and unable to bring the banks to the banquet table and gather up platefuls of toxic mortgage debt bonds after weeks of public reassurances and pitches; and, we’ll all see that a scam had taken place. We will see that the set up was to move the Trojan Horses: Geithner, Bernanke and Summers right up to his free throw line. This is all becoming transparently clear to more and more people.

This is a face-off. President Obama will see that maybe even his closest confidantes, Raum Emanuel is in on the coup. With the cowards- Pelosi, and Reed pissing in their woolens, they’ll switch sides for enough campaign cash if it will fill the gunnysacks under their desks.

Hillary knows that she will go down, too, unless she joins with Barack. She knows her career will be over, as well, if she abandons him, since she has few fans in the Republican camp.

The set up is that if the banking cartel shuts up, then the Mussolini exhumation will begin ushering in what Carl Rove dreamed of—the 100 years of Neo-Fascism-oligarchy-style.

But Obama will not take this lying down!! He will transform himself into Luke Skywalker to take control, and it must be done in a New York Minute. He will nationalize the failed banks—all of them. They will be consolidated overnight, stripped of their assets, and the zombie executives thrown out on the streets only to be shut out of the dark hovels that would protect them from the daylight and citizen vigilante groups look for revenge-European style. He will then take all the cash that had not been stolen and siphoned off by the crime syndicate kleptocrats and put into an Obama Industrial Marshall Plan—New Deal Initiative—relying on the Democratic governors throughout the country to give him cover as they throw him lifelines ASAP. This will be Roosevelt Obama resurrected!

The unemployed will be hired to work the program. Obama will command the FBI to bust open the banking crime syndicate and prosecute the thieves and robber barons.

This will astonish our world allies, and begin to revitalize our trade alliances. Rush Limbaugh and the other Neo-Con Freaks may actually have to go into hiding doing only Internet shows from undisclosed secret locations.

WOW! Madame Joy is something else, isn’t she? I think it is now time for me to wake up, and shake it off. Although, it is always good to dream.

thanks for reading, jerry

7 comments:

solbama said...

I wish my dreams were as positive! But alas, they are nightmares of concentration camp type senarios, the old and young dying from lack of care or concern, mother earth sneezing from the human flu that is her plague.Hunger and pestilence. Except for those times be shortened,and the alarm go off, all would perish in my dreams.

ROGERSBIZ said...

nice blog.

carlandjerry said...

Solbama, I sure hope you nightmares are only due to eating those olives stuffed with habanero peppers just before you go to bed.

Rogersbiz, Thanks for the comment. I hope you check us out on a weekly basis.

jerry

Manifestor_of_Light said...

I can't read your blog. There is not enough contrast with the gray background. The red headlines are not good.
Please change it to something else. Do not change it to a black background. That is even worse.

Countrykenrs said...

Madame Joy’s crystal ball prediction is the only scenario that Obama can follow to stave off the inevitable collapse of the human experiment on Spaceship Earth. Anything less will likely lead to a sooner rather than later big die off of humans. Why would an economist of any ilk believe that peak oil is not real and that within 30-50 years real oil production will be at or below 1930 levels with 3-5 times the number of humans aboard the Earth.

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