Truemors
If there is one article that Americans should read today it is the one included with this post. From the Market Oracle, the most complete analysis I have seen with timeline and reference links describing the history of escalating lies of Secretary Paulson and Ben Bernanke, and the systematic steps leading to the debacle that has brought the US taxpayers to the brink of losing any remnant of their Constitutional Democracy and paying the robbers for robbing them as the final insult. Then in simple point form the author advises all Americans what they can do personally to stop this process in its tracks and regain control before it is too late. If you care about your country and your future, this is a must read so please click the link at the bottom and read to the end.
Somehow Paulson has gone from "Our banking system is a safe and a sound one" (See You Know The Banking System Is Unsound When.... ) to Paulson telling Congress “That we're literally maybe days away from a complete meltdown of our financial system, with all the implications here at home and globally.”
Inquiring minds may wish to consider a recap of things that have happened since Paulson made his "Our banking system is a safe and a sound one" speech.
- Paulson anounced " Financial Institutions Must Be Allowed To Fail ", arguably one of the most amazing financial lies in history.
- Fannie Mae and Freddie Mac were placed in Conservatorship putting taxpayers at risk to the tune of $200 Billion or more. Equity and preferred shareholders were wipe out while the treasury (taxpayer), guaranteed the agency bonds.
- Lehman went bankrupt after a long weekend poker party. See Fed Sponsored Poker Party Morphs Into "Old Maid" for more details .
- AIG was nationalized . The treasury took an 80% stake in AIG in return for $85 billion. Taxpayers are at risk of that $85 billion.
- Merrill Lynch (MER) merged with Bank of America (BAC) as noted in Another Shotgun Marriage: Bank of America and Merrill Lynch .
- 3 Month Treasury Yields Effectively Hit Zero in a systemic distrust of banks and money market funds.
- The Fed Intervenes In Money Markets with non-recourse funding of asset backed commercial paper.
- The US Taxpayer Becomes A Giant Dumpster For Illiquid Assets .
- In the biggest financial witch hunt in history the SEC banned short selling of financials. See Peak Insanity: SEC Plans to Temporarily Ban Short-Selling and Paulson's Shorting Ban Needs Revisions Already .
- Of course Congressional Leaders Are Stunned That Bernanke Finally Admits The Truth .
- Bush Administration Seeks "Dictatorial Power"
The implications are twofold.
1) Paulson and Bernanke are liars
2) Paulson and Bernanke are incompetentThere are no other choices except "both of the above"
Shouldn't Paulson and Bernanke have the obligation to explain how that happened, and most important what the Fed's role and Congress's role in that was?
Yet somehow Congress is supposed to rush through a package that is arguably unconstitutional, because two known liars and/or incompetents say there is an urgent need to do so.
Sadly, Congress is more concerned about getting something done quickly than getting something done right. In the corporate world one would expect to see overtime hours. Here we are in a global financial emergency and Congress is concerned about getting something done before recess.To better understand the need for haste, and how it has worked so well with Latin American dictatorships, one may want to read Naomi Klein's "Shock Doctrine".
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