The Wall Street took the US (and the world) hostage and extracted a heavy ransom. But while the enormous ransom was successfully extracted, there are no guarantees that the hostages will be set free from the shackles of trickle-down economics. On the contrary, there are strong indications that the fraudulent (and perhaps criminal) bailout may turn the current crisis into a protracted agony of a long-bleeding economic depression.

Why the Bailout Scam Is More Likely to Fail than to Succeed

The bailout scam is doomed to fail because it avoids diagnosis and dodges the heart of the problem: the inability of more than five million homeowners to pay their fraudulently inflated mortgage obligations.

Instead of trying to salvage the threatened real assets or homes and save their owners from becoming homeless, the bailout scheme is trying to salvage the phony or fictitious assets of Wall Street gamblers and reward their sins by sending taxpayers' good money after the gamblers' bad money. It focuses on the wrong end of the problem.

The apparent rationale for the bailout plan is that, while the injection of tax payers' money into the Wall Street casino may not be fair, it is a necessary evil that will free the "troubled assets" and create liquidity in the financial markets, thereby triggering a much-needed wave of lending, borrowing, and expansion.

There are at least five major problems with this argument.

The first major problem is that the current financial disaster is not really a liquidity problem as it is repeatedly portrayed to be. It is a problem of faith and trust, or lack thereof, which in turn stems from the disproportionately large amount of junk assets or mortgages relative to real assets. It is true that lending and credit expansion has almost come to a halt and, in this sense, there is a serious liquidity crisis. But this illiquidity is not really due to a lack of good money or real assets in the system. It is rather because owners of such valuable assets are unwilling to lend their precious possessions to owners of troubled assets, or worthless papers.

As Herman E. Daly, University of Maryland economist, puts it, "The value of present real wealth is no longer sufficient to serve as a lien to guarantee the exploding debt. Consequently the debt is being devalued in terms of existing wealth. No one any longer is eager to trade real present wealth for debt even at high interest rates. This is because the debt is worth much less, not because there is not enough money or credit."

The second major problem with the bailout scheme is that it is simply unfeasible and ineffectual because there is just not enough good money to redeem all the bad money that has ballooned or bubbled to a multiple of the good money and/or real assets.

The initial $700 billion bailout money falls way short of what is needed to rescue the Wall Street gamblers, as it is only a fraction of their accumulated bad debt. According to a September 29 Washington Post report:

Twenty of the nation's largest financial institutions owned a combined total of $2.3 trillion in mortgages as of June 30. They owned another $1.2 trillion of mortgage-backed securities. And they reported selling another $1.2 trillion in mortgage-related investments on which they retained hundreds of billions of dollars in potential liability, according to filings the firms made with regulatory agencies. The numbers do not include investments derived from mortgages in more complicated ways, such as collateralized debt obligations.

These three categories of mortgage-related financial instruments add up to a $4.7 trillion obligation for the twenty largest financial institutions. This is nearly seven times as large as the initial Paulson/Bernanke bailout plan of $700 billion, which means the plan is destined to be ineffectual.

Nationwide, the ratio of bad to good money is much higher. According to Herman E. Daly, "Financial assets have grown by a large multiple of the real economy -- paper exchanging for paper is now 20 times greater than exchanges of paper for real commodities." This means that the initial $700 billion bailout fund is simply a drop in the sea of bad debt, and that, therefore, there is not enough good money to pay for the mountain of junk assets accumulated by the gambling financial institutions.

The third major flaw of the bailout plan is that, as mentioned earlier, it does not address the real problem: the problem of rescuing the financially distressed homeowners. As Dr. Paul Craig Roberts points out, "the Paulson bailout does not address the core problem. It only addresses the problem for the financial institutions that hold the troubled assets. Under the bailout plan, the troubled assets move from the banks' books to the Treasury's. But the underlying problem -- the continuing diminishment of mortgage and home values -- remains and continues to worsen."

Simply moving soured assets from fraudulent lenders to the Treasury, that is, buying junk mortgages at face value, will neither help the millions of homeowners facing homelessness, nor help mitigate the raging financial crisis. The bailout should, instead, focus on defrauded homeowners and real assets, not fictitious capital and its unscrupulous owners.

Instead of trying to salvage a mountain of soured assets and prop up bankrupt institutions, the government should allow for a market cleansing, or destruction, of such worthless assets by purchasing the threatened mortgages not at their inflated face value but at the current, depreciated, or market value -- as the FDR government did in response the Great Depression of the 1930s.

Invest in Gold :

Gold is still the safest investment, safeguarded from these scamsters

$700 billion bailout money falls way short of what is needed to rescue the Wall Street gamblers



Twenty of the nation's largest financial institutions owned a combined total of $2.3 trillion in mortgages as of June 30. They owned another $1.2 trillion of mortgage-backed securities. And they reported selling another $1.2 trillion in mortgage-related investments on which they retained hundreds of billions of dollars in potential liability, according to filings the firms made with regulatory agencies. The numbers do not include investments derived from mortgages in more complicated ways, such as collateralized debt obligations.

These three categories of mortgage-related financial instruments add up to a $4.7 trillion obligation for the twenty largest financial institutions. This is nearly seven times as large as the initial Paulson/Bernanke bailout plan of $700 billion, which means the plan is destined to be ineffectual.

Dig deeper into the Housing Sub-Prime loan scam and you may just find some lovely "Weapons of Mass Destruction" hidden there, that Paulson & Bernanke
forgot to tell the World about. Be careful of these high profile Gamblers who are there only to Loot your Money, be Very Careful !!!

Right On !

From the very beginning, I sense something fishy when the real estate values jump high quick and fast and suddenly drop dead. This kind of events are not normal. There is something not right. Believe it or not, real estate (land) was created by God and buildings was created by mankind. Thus it is the combination of God and Man made asset and anyone who mess around will certainly be confronted with ramifications and consequences that is unforeseeable for humans. Hidden pit falls need to be avoided and move with caution. One of the reasons Bush is so unpopular is that he is the President for Big corporate America. The FAT cats. Middle class is being wipe out and Big corporations/companies are getting bigger and stronger. I had nothing against big corporate America being bigger and stronger BUT I am against excessive greed and mean tactics used against little people. Sometimes these big ones (some, not all) had no consideration nor mercy in eliminating anything in their way to make more money. I know money is essential in life but money is NOT everything. The spirit of America is………….the pursuit for happiness. As long as this spirit stays put and continues America can and will overcome obstacles.

In this time of age and era, Trillions and even Zillions of Dollars are needed and possessed by Federal Reserve. Of course Billions are not enough but as a start 700 or 850 Billions is a good start.

I am glad Federal Reserve is an INDEPENDENT ENTITY free from politics and government or congress or judicial branches.

Nargis wrote:

QUOTE:

Right On !

From the very beginning, I sense something fishy when the real estate values jump high quick and fast and suddenly drop dead. This kind of events are not normal. There is something not right. Believe it or not, real estate (land) was created by God and buildings was created by mankind. Thus it is the combination of God and Man made asset and anyone who mess around will certainly be confronted with ramifications and consequences that is unforeseeable for humans. Hidden pit falls need to be avoided and move with caution. One of the reasons Bush is so unpopular is that he is the President for Big corporate America. The FAT cats. Middle class is being wipe out and Big corporations/companies are getting bigger and stronger. I had nothing against big corporate America being bigger and stronger BUT I am against excessive greed and mean tactics used against little people. Sometimes these big ones (some, not all) had no consideration nor mercy in eliminating anything in their way to make more money. I know money is essential in life but money is NOT everything. The spirit of America is………….the pursuit for happiness. As long as this spirit stays put and continues America can and will overcome obstacles.

In this time of age and era, Trillions and even Zillions of Dollars are needed and possessed by Federal Reserve. Of course Billions are not enough but as a start 700 or 850 Billions is a good start.

I am glad Federal Reserve is an INDEPENDENT ENTITY free from politics and government or congress or judicial branches.

===========================================================

Thanks Nargis,

Your article says it all with regards to the man-made plotting of commodities and the greed to exploit.

However, I would like to bring to your attention :

(1)The Federal Reserve, is a Private Entity and is the chief culprit of Financial blunders and misery to the World and also to the American People who are taxed to death to sustain this Parasite.

(2)Federal Reserve is specifically geared to only enrich it's Elite Selected Members, at the cost of bringing Poverty to the Masses. So in reality, the Federal Reserve is the Head of the Snake.

(3) Via the Federal Reserve facilities the thugs of this Housing Scam (Sub-Prime Loans Scam)have long ago shifted their looted money out of America to their respective off-shore accounts and the World has to bail out these
Termites for their misdeeds and corruption.


If Bernanke was honest…


He would announce to the American people that they’re being lied to every time they are told that the mission of the fed is to fight inflation. He would confess that the fed is in reality the primary engine of inflation and that’s its main reason for existence is to monetize the federal deficit, essentially a corrupt wealth transfer device from the American people to politicians and their politically well-connected buddies in Washington. He would confess that most of the antics at the fed were smoke and mirror attempts to mask the inflationary mischief it was causing.

khothla wrote:




Thanks Nargis,

Your article says it all with regards to the man-made plotting of commodities and the greed to exploit.

However, I would like to bring to your attention :

(1)The Federal Reserve, is a Private Entity and is the chief culprit of Financial blunders and misery to the World and also to the American People who are taxed to death to sustain this Parasite.

(2)Federal Reserve is specifically geared to only enrich it's Elite Selected Members, at the cost of bringing Poverty to the Masses. So in reality, the Federal Reserve is the Head of the Snake.

(3) Via the Federal Reserve facilities the thugs of this Housing Scam (Sub-Prime Loans Scam)have long ago shifted their looted money out of America to their respective off-shore accounts and the World has to bail out these
Termites for their misdeeds and corruption.


If Bernanke was honest…


He would announce to the American people that they’re being lied to every time they are told that the mission of the fed is to fight inflation. He would confess that the fed is in reality the primary engine of inflation and that’s its main reason for existence is to monetize the federal deficit, essentially a corrupt wealth transfer device from the American people to politicians and their politically well-connected buddies in Washington. He would confess that most of the antics at the fed were smoke and mirror attempts to mask the inflationary mischief it was causing.[/quote]


====================================================================== =====


Well written khothla and thanx,

What you had written can be true. You see, in my perspective, humans are adapting to making their world more modern and progress. True, old and outdated financial moguls can be outwitting outsmarting and outsourcing with their intellectual professionalism but as time moves on to advance age and era, things changed, situations changed, environments change for change is the major motive of nature. Even the world we live “earth” is changing in many ways. The facial earth we see today is NOT the one 500 years ago. The buildings and structures change so are the norms of civilization change to maturity.

So, my point is can the Federal Reserve the “Private Entity” as you had mention, can be change too? We’ll see. People now adays are not foolish nor dumb. Many people or Americans are brilliant intellectuals and WE the people is the back bone of defining what is right for America and beyond. WE change the government every 8 years maximum and sometimes as short as every 4 years. WE, the people will watch closely our Government, Congress and the Judicial Branch as checks and balances and WE will have the patience and the knowledge to change what is needed to change for better. The power of changing is rested in the hands of WE, the PEOPLE (the next few weeks we will see change in America). According to modern history America is still young if you start from the date of independence which is July 4th 1776. A mere 232 years old. Defining America should be the duty of all Americans. Sure Americans cannot free from the yoke of financial bondage and exploitation. Slavery of any kind, either race or gender or finance is NOT an advanced civilized notion. We know that and we correct that. We as humans are advancing to higher level of understanding, knowledge, technology, engineering and so on. WE, as humans will amend the wrongful tactics, laws and practices as much as we can and as much as the current generation accepts. I strongly believe WE, the people can over come if we had the courage, wisdom and the serenity to change things that we can and accept things that we can’t. Mankind is always in the pursuit for happiness and defining its destiny as much as it can. The world is changing and changing fast these days of electronic age. Personal computers are the revolutionary tools to protest or dissent or contribute ideas and thoughts that can be fruitful for mankind as the whole. Of course in internet there are negative and positive effects but we move on with the positive effects to take our environment to higher level of progress for all. Advancing to higher standard of living conditions and environments and situations and circumstances are good omen to mankind. I do know one thing for sure. America is still in a defining moments and any parasite/parasites that wants to stick to their disgusted nature will be swept by MOTHER “nature” of “change” and FATHER “time” (2 basic elements) will ensure this “change” can and will happened one day.

Regards.

This is how the Scam works, it's a massive Financial Scam

The Paulson-Bernanke Derivatives Scam Bailout....



The grand theft bailout now being rammed through Congress by
Treasury Secretary Paulson, Federal Reserve Chairman Bernanke, and other
officials of the Bush regime with the help of accomplices Pelosi, Majority
Leader Harry Reid, and other parliamentarians is a Derivatives Futures Scam that was long contracted to George Soros and his team of Economic Hitmen who stalked the Global Markets, to lay their market-bombs to be activated just as Paulson-Bernanke were to appear nude at the Wall Street Brothel, with help from Pelosi, Harry Reid, and officials of the Bush regime and including these two jackhauumers, McCain & Obama who are directly funded by Goldman Sachs.

This The entire crisis is not a crisis of subprime mortgages, it is a crisis of the derivatives bubble which was launched by Wendy Gramm of the Commodities Futures Trading Commission and Greenspan of the Fed with the connivance of Robert Rubin of Goldman Sachs and Citibank, and others in the Clinton administration, some 15 years ago.

These derivatives now amount to a total worldwide notional value that can be estimated between 1 quadrillion and two quadrillion US dollars. This sum is so large that it dwarfs the total value of the entire planet earth and all those who live here. Compared to the cancerous, bloated, and fictitious mass of derivatives which is at the root of this crisis, the $700 billion demanded by politicians, large as this may seem, is nothing but a drop in the bucket.

This is not a bailout of homeowners who are threatened with foreclosure; it is a bailout of the lunatic house of cards which desperate bankers have built on these mortgages using derivatives.

The mass of world derivatives between $1 and $2 quadrillion represents an insatiable black hole which is capable of putting an end, not just to civilization, but the human life itself. The moral choice could not be clearer: humanity will either destroy the derivatives bubble in our time, or the derivatives bubble will surely destroy humanity. Those are the stakes in the current exercise.

Paulson and Bernanke, both lawyers for the Wall Street jackals, lampreys,
vultures and hyenas, argue that the public interest demands a bailout of their cronies at Goldman Sachs, Morgan Stanley, J.P. Morgan Chase, Citibank, Bank of America, Wachovia, and other large money vultures.

DERIVATIVES ARE FINANCIAL AIDS and the carrier of this AIDS is none other than the crap from the sewerage, George Soros.

Thanx again for the deep and broad insight of yours khothla. Very intriguing insight indeed. Teaming with tangible tacs about these utopia suckers are indeed mind boggling! You may be right about this bail out scam, ignoring the true victims....... home owners. Time will tell and let’s wait and see these vehement viles’ action end results.

I want to add something. THE Constitution of the United States of America is written for, by, of and start with WE the PEOPLE. In every aspect there is always a beginning. A starting point. In scientifically speaking, once there was a strong rival between 2 basic theories. One is the “Big Bang” (a nuclear fusion explosion) theory and the other is the “Steady State” (the universe is there, always in a steady mode) theory which many scientists accept. This rivalry between the BB and SS goes on until one time an unexpected unintended or accidental evidence is found that convinced many scientist that the Big Bang Theory had won over Steady State Theory once and for all thus the SS demised and lose the battle. That evidence is a noise (electro magnetism radiation) that was pick up accidentally and that "particular" distinct noise is not normal but comes from every where and every direction from space. The scientists soon found out that when the Big Bang Busted from the beginning of time and space, this noise/radiation was created and that is why it comes from every where and every direction of the outer space.

So this tells us that there is always a point where it begins. No matter how small it may be, when it starts, that starting point matters. Nothing stands forever. Even the entire Universe can come to an end. My point is……. no matter how big or strong or mighty, any ENTITY or any MOGUL there will come a TIME where it has to change, either forcibly or voluntarily.

Let’s go back to USA. This election year is the most vital, interesting and most contrast equally powerful in personality or performance but paradoxally different party nominees contending for the presidency of the United States of America. I say paradoxally prominent in ways of …….. one is young and the other is old, one is the right and the other is the left, one is white and the other is black and so on.
My point is the PEOPLE will decide the nomination of the next President of the United States of America on November 4th, 2008 and the next President had the huge task of reforms on White House and beyond. Again, WE the people will watch closely how the next “elected” President conduct his/her duty. Once again, if he/she fail and does not come up to the expectations of the people THEN we will replace him/her again and again until and unless America and Americans proceed into victory, total victory. Although I do not had much trust and confidence in the politicians (any politician) to be frank, I do have trust and confidence on the people of America for the future and the power lies in the hands of the ever changing/modifying intelligent PEOPLE of America, the Americans. The pursuit for happiness is the strong spirit that binds the people of America in finding perfection and defining matters to be better and correcting the faulty outdated notions as time goes by.

Respectful Regards.

Lets start with this one: to get the Justice System rolling in America.

Justice Delayed is Justice Denied.

Why is'nt Maurice Greenberg (AIG) arrested for Massive Fraud in America?

Link to Article

WALL STREET TERRORIST THROWS TOWEL

Maurice Hank Greenberg, AIG and the

Burning Down of the Madhouse

By: Dr. Stefan G. E. Grossmann,
www.gallerize.com

April 05, 2005

Maurice „Hank“ Greenberg, age 79, is living proof to the insight that the insurance industry is full of crooks. To the knowledge of this researcher, none is so crooked as he. The true summary of his lifetime, still veiled behind numerous curtains of legend to this day, is aptly drawn in the following illustration:

To the left, the illustration shows a weird-looking Maurice Greenberg, the departed thief of AIG, the world’s largest insurance. To the right is shown a scene from 9-11. The three words in the illustration are self-explanatory.

A background dossier about Greenberg compiled in the year 2000 is below. Here is some more recent news about Greenberg and AIG:

1. Greenberg and AIG: Recent News

(Without News of Greenberg’s Resignation)

(For news about Greenberg’s resignation in March and early April 2005, see the next section below. This present section sets the stage by presenting the hidden recent facts behind Greenberg’s resignation.)

The recent news about AIG, Maurice Greenberg, his two sons and Warren Buffett indicates that the inside attacks of 9-11-1 are a huge accounting fraud - a mega-Enron - of the U.S. insurance industry. Initially, the insurance industry had to pay several billion $$ in damages. However, 9-11-1 has changed the landscape of insurance risk in such a way that premiums went into a steep hike, and today the U.S. insurance industry is the major beneficiary of 9-11-1 to the tune of over $13 billion increase (in 2004) for AIG alone (AIG alone thus achieved record revenues in 2004 of $100 billion according to preliminary figures).

The beneficiary of a crime is always a prime suspect of a crime. Here: the driving force behind the insurance industry. The Greenbergs, father and two sons, and Warren Buffett, their partner apparent in another Enron-size accounting fraud.

Don’t look – this is plain brutal!

There are numerous links, hints and more direct indicators that 9-11-1 is a crime that was backed by certain investment bank and insurance circles with a special focus on Maurice Hank Greenberg. This author has massive research to back up this accusation, published at www.gallerize.com and the talk radio for spies site www.cloakanddagger.ca.


Here are two outlines of the evidence – basically, an insurance fraud involving a rigged building demolition and the mass-murder of several thousand people:
http://www.plaguepuppy.net/public_html/letters/tom.htm
http://www.gallerize.com/The_Four_Riders_of_the_9-11_Apocalypse.htm .
(scroll down to section III)

Note about the mentioning of Kissinger: Greenberg is reportedly the oldest and best-paying client of Henry Kissinger. (another Zionist Crook)