The Economic Crisis Leading Up to the G-7 Bail-out

Absolute power corrupts absolutely. We have heard that a thousand times. But now, it absolutely corrupted every pore of the body politic.

John McCain was absolutely corrupted by Charles Keating during his control over the Lincoln Savings and Loan debacle. Keating wanted his "boys" in Congress, McCain especially, to do his corrupt bidding by rewriting the regulatory rules allowing him to legally rob his customers. McCon carried the water for him by introducing a bill that would further Keating's plot to expand his racketeering scheme to commit fraud. Fortunately, it erupted into a scandal that lead to hearings. Keating got 5 years in the slammer for racketeering and fraud charges. McCon got paid by Keating for his bidding. Johnny Boy got off with only an ethics violation hand-slap reprimand. Guilty-by-association, John? It was more like guilt-from-association. Keating has currently contributed to McCon's presidential campaign, so the association continues.

Now, Sarah Palin has, too, demonstrated that her absolute power has corrupted her absolutely! Trooper-gate has now become one of her jar-full of "red herrings". An Alaskan favorite, my friends. The investigation found that she was guilty of an abuse of power, an impeachable offense. Guilt-resulting-from-association.

McCon, the I-can-reach-across-the-aisle-Maverick, dismissed the findings of the Trooper-gate investigation saying that it was led by a Democrat, in spite of the fact that the process was originally organized by Republicans. I guess for McCain, if the findings aren't to his liking he whines and cries partisanship. Sorry Johnny Boy, Sarah brought this all upon herself, just as you did with your scandal. I guess you are the current leader of the Party of Whiners.

Speaking of whiners. Is that not what McCain's pal, Phil Gramm called all of us who have watched our life savings disappear from a Republican driven Reagan-style Trickle-Down economic crisis? Consumers, you were scammed and "Trickled" into believing that outsourcing and job cuts, along with declining wages and benefits were good for you! You gonna like it! Just keep spending with your credit cards, home equity loans, and the kid's piggy banks and you'll feel better.

Just go shopping America. And when you do, you will make the upper 10%, who outsourced your jobs in the first place, and cut your wages, and benefits, all the more richer. YEAH!!! You keep paying your usury and compound interest charges, while the rich take it out of your hands and put into their own through dividend checks, rent checks, fees and bank charges, as well as other forms of investment return revenues.

But wait, their returns got burned, too!!! They were attempting to double and triple their wealth holdings by selling all types of securitized investment vehicles, made from loans, especially mortgage loans, and now they lost a big portion from their pot-of-gold. Top of the mornin' to ya, John and Sarah! I've got some moose patties and eggs for yur breakfast!

Stop! Hold on! There is a way to make part of it back! We will have Mikey eat it!  You remember Mikey. The kid who ate the cereal when his brother was skeptical about the taste. Yes, Mikey is all grown up now; Mikey, now a taxpayer, will eat our losses, and in return, he will turn over his income tax withholdings, and social security contributions so the richest people can stop their bleeding losses so as to prevent cancelling their trip to somewhere, or their daughter's 500 guest extravaganza wedding party (black-tie only), or their tricked out Mercedes, or their 200 foot luxury liner (the honeymoon get-away). 

We cannot let them feel any pain.

So now we have arrived at the bail-out plan. After the G-7 raked the Bush Crime Family bosses over the hot coals, they told "The Paulie" Paulson to change gears. Don't mess with those Ole School Europeans. They've been through way too much tough stuff to let a brat like Little Boy Bush give any directions. (Shut up; sit down; hold on!) The Bush-stapos said they would be willing to buy shares of the biggest banks using taxpayer dollars creating ownership rights in exchange for bail-out bucks. But here's the rub, the taxpayers have no voice in the bank's operations, or at the stockholder's meetings, or before anyone running the Banksta Show. It is a "corporate welfare funded bank operation" with no voice in exchange for the government handout. Silent Partner might best describe this scam. Paulson wrote the plan this way because the Bankstas did not want any government interference. Hey, this very reason was just the thing that caused these bank failures. How about a little interference from this point forward! It shouldn't hurt! It will hurt me more than YOU. It's not so bad; it could be worse.

So, the taxpayer instead of offering a bail-out, is now injecting the greedy junkie bankstas with taxpayer borrowed bootie, re-capitalizing the junkie bankstas so they can get on with making more money in the form of loans! How about another hit of that stuff, Paulie? Yikes. How many more loans will be written? How much more debt can the country take? How much bigger can our budget and national debt rise? So tell me Paulie Paulson, who will be borrowing? How much further out on a limb can the consumer go before THEY crash?

President Bush put forth a doctrine to steal the American economy from its citizens in order to give it over to those who had signed up as card carrying members of his Dynastic Crime Family, who would then be given access to the riches that had been amassed resulting from his corrupt administration and policies.

He assisted in the mastermind of the world's biggest bank heist( the Treasury), then got busted for the job which ended badly in a massive implosion causing most of the vault's contents destroyed. The major depositors (Congress and many big time corporate and financial players) came running to the site with frantic arms flailing raised in fear and anger. But instead of calling in the cops to arrest Bush and the rest of the Treasury-gate Burglars, they were given brooms and shovels to sweep up the mess.

The final insult to all the smaller depositors (taxpayers) was to watch as the Treasury-gate Burglars were given the power as to how to rearrange and rebuild the rubbled depository. The arsonists were allowed to rebuild the burned out building. No time spent; no fine paid; no penalty pelted.

What can be said without a doubt is that Bush squandered every ounce of America's goodwill by rising up in his emperor-clad robes in order to take down America.

Bush's 9-11 never stopped on that tragically memorable morning. It has been burning to this very day, like a forest fire raging through villages, towns, and families leaving a smoldering wake trailing behind it along with shards of a ruined nation having to face its economic peril exacerbated by one hapless unitary executive so emphatic on using every drop of his political capital wished for in a psychopathic daydream that would bring him a successful presidency.

Thanks for reading, Jerry

The Hank Paulson Failure

I cannot say this is a conspiracy, but it reads like one. The long term plan appears to have been to kill American labor in favor of a new, more esoteric economy called finance. Finance,the rich man's clean way to make money, without getting one's hands dirty or putting up a cent of one's own cash, was put onto the racetrack by Alan Greenspan after Ronald Reagan gave it his head nod.

Greenspan's plan was to create unfettered free trade, and an unregulated world-wide free market full of leveraged derivative sales. He and his investment banker clones were giddy knowing that they could create huge piles of wealth just by taking debt, without ever having to hold a fraction of real capital. "Leverage me out!" "How far can we magnify a single dollar using these debt instruments", said Humpty Dumpty's investment banker?

Now, here we are with a Congressional $700 billion bail-out, with $150 billion in John McCain-Make-Mine- Tenderloin! Pork. I thought he hated pork? In that bill, the little guy and gal will have their life savings bank deposits FDIC insured. Doesn't that give you piece-of-mind?, until you find out you might have to wait 10 years to get your insurance check! Yes, the FDIC can take 10 years to settle your claim. Just how long can you wait? It might be better off under your mattress. At least, you can get at it when you need it. 

Can we trust the very people who created this financial meltdown to also oversee the implementation of the Paulson bail-out? That is what is happening. Paulson has assigned his pal from Goldman Sachs, Neel Kashkari (or is it cash n' carry) as his point-man to manage the flow of authorized congressional bail-out dollars as the financial institutions line up for their share. Also, another one of Paulson's thieves, Lloyd Blankfein, chairman of Goldman Sachs, was present at, what can be now called the International Treasury Heist Planning Meeting, which took place at the New York Federal Reserve Bank where a strategy conference on the implications of an AIG failure was laid out for the Bush Crime Family and their Bosses to "understand".

I love it when McCain says to Obama, "You just don't understand." That is correct, John Boy. He doesn't understand because Obama is not part of the Bush Crime Family like you are! It is a segregated club; don't you know? Only Republicons are let in. They're the only ones stupid enough to drink the Jim Jones Kool-Aid over and over again. Yet, brain-dead bobble-heads like McCain and the Gangstas are the only fools who would listen to a guy with an approval rating of 25% and falling. 

 

If AIG went bankrupt, Goldman Sachs would likely lose $20 billion. "We can't have that; 

can we, Paulie?", said "da Family" to Hank Paulson. This is why Paulson needs to be summoned to talk in front of a Grand Jury regarding his actions and his conflict-of-interests.

Paulson is roller skating on ice. Not just any ice, but thin ice, at best. He just cannot seem to get anywhere with any skill or accuracy. He gets the bail-out of $700 billion that he wanted so the world's central banks, especially China, which holds $400 billion in toxic derivative debt, can dump it on the U.S. taxpayer in exchange for freshly color laser printed dollars, in order to get re-capitalized. But on Tuesday, he switched gears and began to bail-out the Commercial Paper debt market so very short term commercial borrowing could continue. Just tell me who will borrow? Bush-brain tells us that auto dealers need to borrow to put new cars on their lots. Who is brave enough to buy a new car right now, unless they have enough expendable cash to part with? I guess, paying down one's house debt is not always a personal priority. Adding a new car loan takes precedence. This seems to be a time to reduce one's debt burden. Not increase it. Our president went on to tell us we need more McDonald's restaurants and they need some bail-out cash to build them. HUH? Did he mean that there aren't enough of them already during what appears to be an economic downturn? Rollin', rollin', rollin', that cash stream ain't but swollen, keep those bucks a movin', Rawhide.

Paulie, there is only $700 billion in your piggy bank. So, focus! Has he captured the golden egg laying goose yet?

Paul Craig Roberts (Counterpunch.org; "Can a Bailout Succeed") asked how does he stretch out $700 billion to cover $2.3 trillion in mortgage-backed securities held by "20 of the nation's largest financial institutions?" How will "the Paulie" do it? Mr. Roberts went on to state that the $2.3 trillion does not even include mortgages that were transformed into more complex derivatives, such as collateralized debt obligations, and then into, and more than likely, credit default swaps. WOW! That would be quite the clown trick. "Watch me pull a few trillion out of my hat. Presto!"

The stock market cannot seem to get any legs to hop and remain into positive territory without the Plunge Protection Team pitching money into the market, in spite of an investment bank and commercial paper debt bail-out. Why? Don't they trust the Goldman Sachs bagman? The sky IS falling Chicken Little and the world markets are getting hailed on.

Mike Whitney (Counterpunch.org; "Still on the Edge of the Abyss"; 10-6-08) quoted Henry Liu in his article "Liquidity Boom and Looming Crisis", in the Asia Times, "Unlike real physical assets, virtual financial mirages that arise out of thin air can evaporate again into thin air without warning. As inflation picks up, the liquidity boom and asset inflation will draw to a close, leaving a hollowed economy devoid of substance...A global financial crisis is inevitable." 

Main Street translates that into " The ride, it ain't over. We're on the way down, so hold onto your hat, Joe!"

Thanks for reading, Jerry