The biggest systematic looting of the US Treasury in history
Tuesday, 23 September 2008

America is at the doorstep of a 2nd great depression
Michael Webster: Investigative Reporter

9/11 was the most terrifying time for Americans in modern times, but a much bigger and even more dangerous attack on America is taking place right now right under our noses: The purposed bail out of the American financial institutions is a systematic looting of the US Treasury and the American taxpayer and is a private take over of the American financial system.

The great depression is about to repeat itself. Investment banks and deposit banks are failing, money has frozen up. No loans business or personal. No money available for employers to make payroll. There will be millions of Americans with no jobs and therefore no money. Basics such as gas and food will be hard to come by and many American families will go to bed at night hungry.

The U.S. Treasury and the Federal Reserve Bank (a private off shore company) are about to set up a total bail out system for the rich and the privileged. This must be stopped or for the average working American will suffer the most and the country will be in a deep depression, that's how serious it is. All we can do now is contact our Congressmen or Senator and insist they allow for mainstreet, us the people in the new world order. At the very least there must be strong oversight by Congress and a committee of not just Congress, Treasury, and feds but also of private working class citizens. This committee must represent the masses and have real control over the bail out and regulatefor the American on the street.

As this writer has been reporting for years warning of this day and pointing out where we were headed, the first blatant move that the public first became aware of was the downgrading of the stock and stealing of the floundering Bear Sterns, by the Federal Reserve Bank and US Treasury, then handing the institution and its physical building to JP Morgan.

The next move was to bail out Fannie Mae and Freddie Mac.

While allowing Lehman Brothers to drown on its own, and than was picked up by an England bank, and Merrill Lynch to come under the wing of the Bank of America, curiously the F & T (Fed and Treasury) saw fit to answer AIGs call for a $30 billion bridge loan with an $85 billion bailout.

This all happened while Goldman Sacks and Morgan Stanley was able to get the fed to authorize them to change over night from investment banking concerns to regular deposit banks.

U.S. Treasury Secretary Paulson is the former boss at Goldman Sacks and what a golden parachute he is devising for his former employer. All this without oversight or answering to anyone. This is a total take over without consulting or getting any kind of approval from the people of our country, the tax payer who is footing the entire bill.

At the bottom of all this bad debt paper, unsecured loans, bad mortgages, irresponsible handing out of monies to unfit borrowers by mortgage companies, banks, and others who should have known better but for their greed, their criminality, and the lack of effective overriding controls. It was all paper, yet they are being bailed out with cash. Something smells.

But then these same lenders made their high commissions and their profits from us the people and now we the people have to bail them out at the tune of trillions. Something is very not right about this picture.

Jerry Mazza, Online Journal Associate Editor writes: It turns out the banks had no problem passing the debt paper upwards to be collateralized by investment banks into securities, preferred stocks and bonds. And the central banks had no problem sucking it up. The entire financial system took part in this orgy, knowing full well that without protection it could catch the financial AIDS virus that could spell death to our financial system. But they succumbed to their cash-lust against all their well-credentialed wisdom.

Now the Fed is throwing still more money into securing money market funds, whose buck was busted recently, yielding 97 cents on the dollar. So your money is safe nowhere, that is without some pig somewhere getting a piece of it; that is whoever is behind this incredible manipulation. Of course, in an election year it behooves the masters of debt, the Bush administration to rush in and now borrow from the US taxpayers, from our Treasury, to bail out these sorry corporate flops. But then borrowing comes natural to Bush & Company.

AIG, unable to raise the $30 billion they claimed they needed, the Feds decided to give them 85 billion. The company, who has operations in 130 countries, earning billions, was not telling all. But, Bernanke and Paulson bailed them out of debt with taxpayer dollars. So Jerry Mazza points out that Bernanke and Paulson took 80 percent of AIGs stock for collateral and at least 8.5 percent interest on earnings. They also asked for its CEO, Robert Willumstad, to leave, and they brought in CEO Edward Liddy, former chief exec of Allstate. Mr. Liddy, as the Wall Street Journal tells us is best known for pulling apart empires, having helped dismantle Sears.

He also has the dubious achievement of having worked under Donald Rumsfeld at drug maker G.G. Searle and Co [who brought you the deadly Aspartame after it was banned for 15 years by the FDA]. Mr. Liddy happens to be on the board at Goldman Sachs, the investment bank Mr. Paulsen headed before becoming Treasury secretary. What a coincidence.

Can you imagine, President Bush then approved the $85 billion AIG bailout without the approval of Congress? He goes on to say as to AIGs backstory, which, as Ruppert pointed out, includes affiliations with the OSS/CIA going back to WW II and problems with money-laundering rings for drug trafficking. Let me add this bit of back story for your reading pleasure, 9/11 and the Greenberg Familia.

Of course, Mr. Greenberg had to step down as CEO of AIG in 2005. As Wikepedia tells us, by the mid-2000s AIG had become embroiled in a series of fraud investigations conducted by the Securities and Exchange Commission, U.S. Justice Department, and New York State Attorney Generals Office.

Greenberg was ousted amid an accounting scandal in February 2005. The New York Attorney Generals investigation led to a $1.6 billion fine for AIG and criminal charges for some of its executives.

Greenberg was succeeded as CEO by Martin J. Sullivan, who had begun his career at AIG as a clerk in its London office in 1970. On June 15, 2008, under intense pressure due to financial losses and a falling stock price, Martin Sullivan resigned from the CEO position. He was replaced by Robert B. Willumstad, who has served as Chairman of the Board of Directors of the Company since 2006. Willumstad
was forced to step down and was replaced by Edward M. Liddy on September 17, 2008.

Meanwhile, we were told that since AIG was really an international player its infected debt paper could reap financial havoc around the world. For example, the Times reported that AIG had $20 billion of subprime mortgages marked at 69 cents on the dollar and $24 billion in Alt-A securities values at 67 cents on the dollar, similar to the kinds of debt Lehman was carrying.

The Times also said, AIG has also been under pressure from the derivatives contracts that its London-based financial products unit sold in connection with complex debt securities, making them more attractive to buyers. The swaps also gave speculators an opportunity to bet on the debt securities overall credit worthiness, which have declined in response to the turmoil in the housing markets.

The bottom line is, because the debt securities covered by the swaps are so complex and opaque, it has been hard for investors to verify AIGs numbers on their own, and investors have grown impatient as AIG reported big losses they did not expect in the last two quarters. That’s "Times-talk" for they were crooks, covering up the real numbers in a web of deceit, which is traditionally their specialty. Though we don’t have Hank Greenberg to kick around anymore, we should, Christopher Cox, that financial explosions were occurring in New York and that the towers of finance were being hit, exploding, and falling from what, short selling? Is that what it was? Of course,Commissioner Cox roused himself on Friday and banned all short selling, for a temporary emergency action to prohibit short selling in financial companies to protect the integrity and quality of the securities market and strengthen investor confidence. The UK and FSA took similar action.

The bear raids on the banks and brokers were NOT a case of piling on by US based hedge funds. In terms of order flow, the vast majority of the financial short selling the past week or so were being done overseas.

It appears that the lions share of shorting was coming out of overseas locations such as London and Dubai . It may not be a coincidence that the financial short selling ban is both here and in London . Google or go to: Terrorist attack Wall Street.

There is another coincidence: the huge increase in shorting of the financials occurred on the anniversary of 9/11. And on top of that, the same institutions attacked on 9/11/01 were the ones suffering in recent days. Short sales require a locate (shares to borrow) and then a subsequent delivery. It should take less than 3 days to deliver the borrowed shares, but instead delivery is often delayed indefinitely.

Failure to deliver leads to a margin, which can be as high as 9-15 percent.

We're under attack. Somebody is making money on this.

That is just the way certain individuals made millions on 9/11, having foreknowledge of the coming event, by betting on Morgan Stanley (located in the North Tower), United and American Airlines stock to tank, and by betting on defense industry stocks to zoom up. The real revelation here is that the market and its so-called protective systems are offering us about as much protection from foreign and domestic attack as NORADs air-defense system did on 9/11. America once more is under fire. As on that day, Cheney was in the White House bunker directing activities, and Bush was stranded somewhere listening to some school children read a goat story. And above them, some financial elites were pulling the strings to pull down the American economy and make us less than a banana republic for their continued picking. Seven years later, hardly anything has changed.

Vermont's lone congressman is calling for financial reform from Washington . He said the Bush administration is asking lawmakers for a $700 billion bailout for companies burned by bad lending practices.

Democrat Peter Welch says the government has to do more than just write a blank check to cover Wall Street's bad loans. He's calling for more accountability for executives who run their companies into the ground, tougher standards on lending, and more transparency in confusing financial deals. Welch says lawmakers must also work to ensure the burden ofpaying for the bailout does not fall on the middle
class.

Chris Whalen, co-founder of the Wall Street consultancy Institutional Risk Analytics, said: this scheme helps banks sell off solvent assets, it is entirely inappropriate.

The proposal to allow foreign banks such as UBS, the Swiss financial institution, to sell their mortgage-backed debt into the fund has only added to the anger.

Mr Whalen added: This is so unseemly. Why should the US taxpayer pick up the tab for an institution like UBS? If we include foreign banks, where will we draw the line? Deutsche Bank is the responsibility of the German Government.

There is so much rage out there, among the electorate. Wall Street is so insular, so indifferent to what the rest of America thinks.

The American dollar has dropped like a rock and has devalued the American buying power and I’m predicting as many others have that the American dollar as we know it will be a thing of the past, and will be replaced by other fiat money with a wedding of the American dollar with the euro.

The bailout as it is proposed will not help the average American and will not stop the falling prices of their houses as their houses were grossly over inflated in price by the big boys and we now have a surplus of houses! Foreclosures are at an all time high and many Americans are being forced out into the streets. Also many renters are being forced out as well.

The politicians in Washington ALL saw this financial collapse coming! I say vote them ALL out of office both the Democrats and Republicans and keep voting them out until we get politicians who are truly for WE THE PEOPLE!

WAKE UP AMERICA ! The politicians think we are all a bunch of idiots!

America desperately needs a new political party who truly represents the people and not Wall Street or special interest groups. America we are in serious trouble.
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