Commentary - 09/29/08

Bailout Is For Those Wanting to Avoid Paying Bail

I can really see them saying "We must hang together to avoid being hung together."

In the New York Times Sunday [09/28] there was this article, "Behind Insurer’s Crisis, Blind Eye to a Web of Risk, in which appears this quote:

“It is hard for us, without being flippant, to even see a scenario within any kind of realm of reason that would see us losing one dollar in any of those transactions.” — Joseph J. Cassano, a former A.I.G. executive, August 2007
It goes on to say that "Joseph J. Cassano ran an office in London that lost billions of dollars for its company." The problem is that:
Although it was not widely known, Goldman [Sachs], a Wall Street stalwart that had seemed immune to its rivals’ woes, was A.I.G.’s largest trading partner, according to six people close to the insurer who requested anonymity because of confidentiality agreements. A collapse of the insurer threatened to leave a hole of as much as $20 billion in Goldman’s side, several of these people said.
That's the problem I'm having with the bailout. The honest, tax-paying citizens are being saddled with enormous debt, WITH INTEREST, to cover up the trails of the "Snakes In Suits" that would easily show up if the deals unravelled. The bailout is like using a tree branch to obliterate the trails in the dust that could easily be followed to their lairs when the deals collapse. This Associated Press article, Fannie, Freddie disclose subpoenas, investigations, is just one example:
Adding to their woes, mortgage finance giants Fannie Mac and Freddie Mac are facing a federal grand jury investigation into their accounting practices.

The mortgage finance companies said Monday that a federal grand jury in New York is investigating accounting, disclosure and corporate governance issues at Washington-based Fannie and McLean, Va.-based Freddie.

I know this is harsh talk, but war is hell, and this is surely an economic war, in which the rest of us live or die financially.

Another problem is that THEY don't even know if it will work or not. In this Bloomberg article, Paulson Must Make $700 Billion Rescue for Banks Work:

Treasury Secretary Henry Paulson and congressional Democrats hammered out a consensus on spending up to $700 billion to rescue the financial industry. There isn't consensus on whether it would work.
Looks like a "Heads They Win, Tails We Lose" gamble. I'm sure that the financiers will attempt to financially punish us for NOT having their way, just like spoiled children. Stocks, Oil Plunge After Congress Rejects Bailout is just one example.

However, there are those who have a much better plan to get us out of this mess. That's why I was in Chicago at this conference. On Saturday [9/27] ABC7 Chicago sent a cameraman out to the American Monetary Insitute conference being held at Roosevelt University, but it never made the news nor their website, at least as of this writing. Again, critical public information winds up on the cutting room floor of corporate media.

Dennis Kucinich tried to say something at Congress this weekend, but they only gave him ONE minute. Congressional Record pages H10135 [bottom right] and H10136 [top left]records his efforts. Talk about trying to squeeze a word in edgewise. There was only time to mention the American Monetary Institute's name, and no time to mention the Monetary Act. Just an introduction to the problem, with no time to describe the solution. It's got to be frustrating to all of us.

The main point of the American Monetary Act spearheaded by Stephen Zarlenga of the American Monetary Institute is to correct the public wrong of 1913 [passing the Federal Reserve Act in the same manner they passed the Patriot Act] and put the Federal Reserve under public control in the U. S. Treasury. In this way, the public would at least not have to pay INTEREST on all that money the Feds are creating from nothing. Could it not be more obvious now of the scam that was pushed through Congress in 1913?

Case in point: Fed Pumps Further $630 Billion Into Financial System

The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.
. . .
The Fed's expansion of liquidity, the biggest since credit markets seized up last year, comes as Congress prepares to vote on a $700 billion bailout for the financial industry.
Double or nothing already???

As proven time and time again in history, private institutions are NOT better at looking after public finances. In fact, special thanks to Ellen Hodgson Brown J.D., we have this quote:

"These capitalists generally act harmoniously and in concert to fleece the people, and now that they have got into a quarrel with themselves, we are called upon to appropriate the people’s money to settle the quarrel."
– Abraham Lincoln, speech to Illinois legislature, January 1837
Do you need any further proof than our most recent events?

Don't you hate it when The Dragon Wins?

© 2008 by Edward Ulysses Cate
Help Support This Site
Commentary Index: