America is at the doorstep of a 2nd great depression

BY MICHAEL WEBSTER: INVESTIGATIVE REPORTER Sept 22, 2008

at 11:30 PM, PDT

 

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 tax

payer 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 regulate

for 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.

Speaking of terrorism, please read it, links and all.



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 of

paying 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.