THE PLAN, presented by Treasury Secretary Henry Paulson and supported, of course, by the Federal Reserve chairman, President Bush and other idiots, would transfer the burden of losses incurred in the collapse of the pyramid scheme from the books of finance houses to the Federal government and the U.S. taxpayer.
This vulgar scheme is being marketed to a frightened public as a "bold" plan to "solve" the financial crisis once and for all.
This food-out-of-hungry-babies’ mouths rip-off is both "necessary" and in the public interest? Give us a break.
I'm not done...
Do they think we will be stupid forever?
Some of us are old enough to remember being molded into the popular opinion that finance, not production, was the road to wealth. For 40 years we have witnessed the systematic dismantling of American industry and agriculture, and the turning of our economy into a damned casino.
The banking and financial system has been packaged as a gift, to speculators. A relatively small percent of the population got rich -- some obscenely so -- while a growing percent were sucked into poverty.
Every protection put into law to stop precisely this kind of looting has been systematically repealed, including the Glass-Steagall Act which forbade commercial banks from engaging in investment banking.
Now that this insanity has met the inevitable hard wall of consequences, We the People are being told that we must bail out the crooks and schemers.
The final phase of this collapse began summer last year, with the mythical "subprime crisis," a deliberate misnomer. Then the "subprime crisis" somehow morphed into a "credit crunch," infecting an "otherwise healthy" banking system.
All lies... carefully constructed to support the inevitable demand for a bailout.
The "investment" houses built up a huge derivatives bubble in the 1990s, a pyramid scheme which needed more money continually fed into its maw to keep it alive. One of the prime sources of fuel was mortgages, which were used to spawn mortgage-backed securities and even more bizarre forms of casino chips like CDOs. The more mortgage money came in, the larger the profits that could be made from speculating in the securities, yielding more fuel for new mortgages.
It was that securities monster which drove the cost of buying homes -- and the mortgages on those homes -- into fantasyland. The Frankenstein worked so well that it drove the price beyond the means of many Americans; so, in order to keep the mortgages flowing in, the street dealers began to relax loan standards, and in the end were selling homes to people who could not afford them, just to keep the game going.
Soon, prices were so high, that even with the lax lending standards the game couldn't be sustained, and the whole mess collapsed.
"Subprime" loans collapsed first because they were the weakest, made at the top of market, so the subprime lenders and borrowers were framed as the villains, covering up any true view of the matter.
Now we witness a Bush Secretary of the Treasury asserting that the banks have been infected by this "housing crisis" and that "to protect the American people" we must throw our children into the fire.
But it was Secretary of the Treasury Paulson, a former investment banker, and his investment banking drinking buddies and their fat predecessors, who created this nightmare!
Now they are demanding that we save their asses from the consequences of their folly, and hand the bill to the very families they have been eating alive for decades.
The foxes are demanding that the chickens pay for cleaning up the blood in the chicken coop.
That blood is evidence. And it is on the hands of the perpetrators of this crime. Freeze all the speculative paper, for purposes of auditing. If the people go with this bailout scam, the people lose control over the situation, not to mention trillions of dollars that could be used for constructive purposes. Our Constitution and precedent give us the power to put this mess into bankruptcy reorganization.
Will the Congress, now OWNED BY the foxy perpetrators of this crime, represent the citizens who elected them -- to support and defend the Constitution of the United States against all enemies, foreign and domestic and bear true faith and allegiance to the Constitution – abide by their oath?
Good people have died far before their time because of these foxes and their drinking buddies. Here we draw the line.
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(Credit to John and colleagues, who deserve great thanks and better helpers.)