The Bail-Out of Wall Street Will Not Bail-Out Main Street!

The claims by Bernanke (Fed) and Paulson (Treasury) that the best way to open-up the credit markets is to recapitalize financial institutions through buying-up their toxic waste has absolutely no basis in fact.

This method of recapitalization is a total rip-off of Americans ... pure and simple! All this plan does is to provide a massive bail-out of the common and preferred shareholders and unsecured creditors of banks and other financial institutions and will do very little to open credit markets. Because at the end of the day, even assuming that all of the toxic waste has been snapped-up by your tax dollars, a large number of banks will still remain under capitalized, as they have been since 2007.

Also, it does nothing to resolve the severe stress in money markets and interbank markets which are now on the edge of a systematic meltdown. It does little to resolve the debt burden of millions of distressed homeowners, and the cost of borrowing $700billion to Americans will go right through the roof.

Paulson's Plan is a total and unmitigated disgrace. If its intent was to Bail-Out Main Street instead of the gypsies, tramps and thieves on Wall Street, then why have we not seen simple, yet cost-effective strategies, such as;

• public injection of preferred shares into distressed financial institutions.
• the mandated matching of capital by current shareholders to ensure that shareholders take the first loss. Why should non-investors be on the hook for reckless behaviour. They haven't speculated nor invested money so why should they now have to cover investor losses. Doesn't sound like a free market economy to me.
• suspension of all dividend payments.
• conversion of some of the unsecured debt into equity via a debt for equity swap.

In this way shareholders and creditors are forced to contribute to the recapitalization of affected financial institutions, and now, the $700billion bailout becomes a $350billion taxpayer bailout with only 50% used to buy toxic assets with the other 50% taking the form of public capital injection.

It is absolutely pathetic that the only financial strategy which Congress is looking at is Paulson's and Bernanke's Plan. Unless both are the world's foremost financial minds, Congress should also be seeking the advice of world-class economists and financial experts on behalf of the American people, to evaluate alternative plans which could possibly be more efficient and less costly in resolving this huge crisis.

In my opinion, the bottom-line on the bail-out package, as it currently stands, will privilege the gains and socialize the losses!

Caught between a Rock and a Hard Place of their Own Making.

This is where the U.S. government sits tonight. Whichever way Congress moves on the bail-out or as the spinmeisters are now labeling it ...the rescue package ... the fools on capitol hill will be facing their constituents in a no-win situation.

If they adopt the bail-out package, Congress will be accused of bailing out the Wall street psychopaths and sociopaths while sticking the American public with yet another Ponzi-scheme from the bankers.

If they don't adopt the plan and the credit markets freeze, sending the U.S. economy down the tubes, they will be blamed for that as well.

The fact of the matter is that Congress deserves its ultimate destiny. These pompous, self-serving, do-nothing, fat-cats sat on their collective butts and allowed this financial mess to happen. All of this mess could have been so easily avoided if THEY HAD DONE THEIR JOBS. If they had actually cared one iota about the American public whom they were elected to serve and not destroy!

Even the slightest amount of regulation and oversight could have prevented all of this. But no, the cowboys on the Hill completely and effectively deregulated Wall street allowing all of the corporate gypsies, tramps and thieves to excess America to death.

Tonight the Congress, Bush, Bernanke, Paulson, et al; continue their charades and theatrics. On the one hand Bush, Bernanke and Paulson are stating that a financial Armageddon will happen if the bail-out isn't approved.

On the other hand Congress appears to be balking. They claim that they need more time to deliberate the the implications and ponder alternative plans and modify the current proposal to make it more palatable to voters.

Forget about making your "solutions" more palatable to American's!!!!

Grow a back-bone and do what's right!!!! Quit rolling-over like little puppies every time some financial scum-bag or lobbyist offers you a bone!

If American's are left "holding the bag" for a mess which they didn't create, then every incumbant in Washington should be fired (voted out of office) because they did not do their job and as a result placed every single American in harms way.

Obama and McCain are right. Washington does need a change ... and that change should begin by giving every single politician their walking papers.

John McCain's McLying Game

Oh John, John, John ... you little maverick you! Big talk about wanting to be the new sheriff in town who has come to clean-up wild, wild Washington! Well giddy-up pardner!

It seems as though Sheriff John McCain, with his ten gallon hat and eleven gallon head, is not much different than the rest of those bad boys in Washington.

McCain started his campaign expressing his hope that the presidential campaign would not become sleazy. Well "holy talking out of the both sides of your mouth Batman." In fact, McCain's lies have traveled the full spectrum from annoying to the sleazy. Even the New York Times editorial board are calling John McCain a liar!

Let's check out some of the things which Sheriff McCain has said;

• 38 million American's heard Obama say in his speech at the Democratic National Convention that he was open to off-shore oil-drilling and the building of new nuclear-power plants. Then McCain in his own acceptance speech said that Obama was opposed to both of these potential options. Perhaps not a lie and just a senior moment.
• McCain is big on talking about supporting and protecting American workers. Yet Sheriff McCain supported the foreign buyout of an American company in Wilmington, Ohio which led to the loss of thousands of jobs.
• McCain says that Obama favors a government-run health-care system ... another lie! In fact Obama wants a market-based system subsidized by the government whereby there would be increased government regulation of the drug and insurance industries.
• McCain really turned sleazy when he ran a television ad claiming that Obama favored "comprehensive" sex education for kindergartners. In fact Obama favored a bill that would have warned kindergartners about sexual predators and improper touching. A big difference wouldn't you say?
• Obama, in talking about McCain's effort to remarket his economic policies, said that it was like putting "lipstick on a pig" McCain then accussed Obama of referring to Sara Palin. My personal opinion is that if the lipstick fits ..........couldn't resist that cheap shot.
• McCain is accussing the "elite media" for spreading rumors about Palin's personal life. In fact Palin rumors are originating in the blogosphere and the tabloid press.
• McCain has been contrasting his ALLEGED FOREIGN POLICY EXPERTISE and toughness with Obama's inexperience and alleged weakness. McCain wants to "win" the Iraq war and face down the Iranians. Then a funny thing happened on the way to the forum. The Iraqis said that they favored Obama's withdrawal plan, and surprise of surprises, Bush and the Boys started talking to the Iranians. So what does McCain do? He questions Obama's patriotism. saying that Obama would rather lose a war than lose the presidential election. HuH???
• When the financial crisis blew-up in America's face this week, Sheriff McCain in all of his sartotial splendor and righteous indignation promised, that when he went to Washington as president, he would clean-up all of the gypsies, tramps and thieves on Wall Street through stringent government over-sight and increased regulations. The trouble is that over the years Sheriff McCain has been one of the biggest proponents of deregulating Wall Street. In fact, John McCain was an effective gog in the wheel which set the financial deregulation table in the first place so that the Wall Street psychopaths in their Armani suits could dine like kings ... only this week they are dining-out on the taxpayers tab!

These are but a few examples. John McCain's campaign has been a never ending series of demeaning ads and a daily dose of widely documented and exposed McLies! This from a man who claimed that this was the type of election campaign which he did not want to run in the first place.

In my opinion, John McCain has raised serious questions about whether he has the character needed to lead America out of its current difficulties and challenges.

When a military "hero" is prepared to lie and to wallow in the mud in order to become president, he is not the principled maverick which he claims to be, but rather just another part of the sorry, self-serving Washington crowd which he claims not to be a part of. And that is probably the biggest McLie of all!

The Elitists are Destroying America while Congress does Nothing!

Here's what the elitist psychopaths have managed to destroy so far!

• They have destroyed the real estate industry and have put millions of people out of work.
• They have caused a faltering U.S. economy.
• They have created an insane national debt with an equally insane trade deficit transforming America from the world's greatest creditor nation to the world's greatest debtor nation within the space of one single solitary decade.
• They have driven oil to levels that will decimate the entire world economy despite abundant domestic reserves of oil.
• They have created hundreds of trillions in derivatives that have virtually no collateralization, thus threatening the entire world financial system.
• They have inflated American's out of their wealth. Now there is very little left to spend to drive the U.S. economy.
• They have created the perfect financial storm which will suck America into a catastrophic hyperinflationary recession followed by a deflationary depression the likes of which have never been seen before in the entire history of the U.S.
• They have created trillions upon trillions in entitlements that cannot be possibly paid without reducing all of your benefits or drastically increasing your taxes.
• They have perpetrated one fraudulent financial scheme after another creating a credit crunch that threatens to annihilate bank capital.
• They have caused the price of food to skyrocket in America and food riots to break out around the globe while giant "agro-corporations" are earning record profits.
• They have plans to nationalize all the financial losses caused by Wall Street fraud and then put the Fed, and not the Government, in charge of the entire U.S. financial system when in fact their buddies at the Fed have been the root cause of virtually every problem in the American financial system!!!

This is the monster which both the domestic and global elitists have created. My hope is that their monster eats them alive. Yesterday would not be soon enough.

This Would Make Tony Soprano Proud!

Yesterday I reported that Goldman Sachs, Morgan Stanley and Bear Stearns were under criminal investigation.

Now the FBI has disclosed that criminal investigations have been launched against 17 companies in the fallout of the subprime mortgage collapse.

The FBI Criminal Investigation Division currently has 1,253 mortgage fraud investigations into all types of mortgage fraud and schemes around the country, including illegal property flipping, home equity schemes and check fraud cases.

Tony Soprano's Goodfella's "ain't got nuttin'" on this den of vipers on Wall Street!

The Federal Reserve is neither Federal nor a Reserve! It is one of the Greatest Scams of Alltime!

Episode 3: I Don't Believe that it Happened!

It took 9 days for the 7 men to hammer out all of the important details of what would eventually become the Federal Reserve.

For a number of years after the meeting all 7 denied that the meeting ever took place. It was only after the Fed was firmly established that they began openly talking about it.

For those who are still of the opinion that Jekyll Island never happened, several books have been written by some of the participants detailing what they had accomplished. Visit your local library and check them out.

Frank Vanderlip, one of the "unmagnificent 7", wrote an article which appeared in the February 9, 1935 edition of the Saturday Evening Post. Here is a brief excerpt.

" I do not feel it is an exaggeration to speak of our secret expedition to Jekyll Island as the occasion of the actual conception of what eventually became the Federal Reserve System. We were told to leave our last names behind us. We were told further that we should avoid dining together on the night of our departure. We were instructed to come one at a time and as unobtrusively as possible to the railroad terminal on the New Jersey littoral of the Hudson where Senator Aldrich's private car would be in readiness attached to the rear-end of a train to the south. Once aboard the private car we began to observe the taboo that had been fixed on last names. We addressed one another as Ben, Paul, and Abe. Davison and I adopted even deeper disguises abandoning our first names. On the theory that we were always right, he became Wilbur and I became Orville after those two aviation pioneers the Wright brothers. The servants and train crew may have known the identities of one or two of us, but they did not know all and it was the names of all printed together that would've made our mysterious journey significant in Washington, Wall Street, even in London. Discovery we knew simply must not happen."

"If it were to be exposed publicly that our particular group had gotten together and written a banking bill, that bill would have no chance whatever of passage by Congress."

Next - Episode 4: What exactly is the Federal Reserve?