Friday, December 18, 2009

Barney Frank's Financial "reform" HR 4173 is TARP on Steroids at Taxpayer Expense

With this bill, the President will get access to TARP without Congress's approval; and it's rich with loopholes. It's not "reform"- it's allowing the state of TARP to be a permanent condition for lenders who sell counterfeit assets through whatever loopholes they create for themselves.


Again the actual bill

Update: 12/15/2009

We're in the middle of an economic crisis caused by the greatest financial scandal in the history of the world. And our financially illiterate and incompetant legislative and executive branches refuse to listen to our economic advisor.

He is doing the right thing.

Regulators Resist Volcker Wandering Warning of Too-Big-to-Fail

Dec. 15 (Bloomberg) -- Paul A. Volcker visited nine cities in five countries in the past eight weeks to warn that bankers and regulators “have not come anywhere close to responding with necessary vigor” to the worst economic crisis in 70 years.

“There is a lot of evidence that financial weaknesses brought us to the brink of a great depression,” Volcker, 82, said Dec. 8. at a conference in West Sussex, England. He told executives there that the changes they’ve proposed are “like a dimple.”

Our House Speaker Nancy Pelosi proves again that she hasn't even looked at the bill. Does she work drunk?

“The House of Representatives has acted to leave the age of dishonesty, recklessness and irresponsibility behind,” said Speaker Nancy Pelosi, a California Democrat, after the vote.
Update: 12/13/2009

Goldman Fueled AIG Gambles

"Goldman Sachs Group Inc. played a bigger role than has been publicly disclosed in fueling the mortgage bets that nearly felled American Insurance Group Inc.

Goldman was one of 16 banks paid off when the U.S. government last year spent billions closing out soured trades that AIG made with the financial firms. ...

...The banks wanted protection in case the housing market tanked. Many turned to Goldman, which effectively insured the securities against losses. Then, to cover its own potential losses, Goldman bought protection from AIG, in the form of credit-default swaps.

Goldman charged more than AIG for the protection, so it was able to pocket the difference, making millions while moving the default risks to AIG, according to people familiar with the trades.

The banks eventually realized they didn't need to use Goldman as a middleman.

The trades seemed prudent at the time given AIG's strong credit rating and the fact that AIG agreed to make payments to Goldman, known as collateral, if the value of the CDOs declined. The trades were also low risk for Goldman as long as AIG stayed afloat. ...

..."It seems shocking to me that Goldman would become so exposed to AIG and kept doing deals with them and laying on the risk," says Tom Savage, a former chief executive of AIG's financial products unit who left in 2001 before the explosive growth of insuring mortgage-debt pools....

...A Goldman spokesman said that between mid-2007 and early 2008, Goldman showed AIG "market price levels" at which trades could be undone, allowing AIG to decrease its risk, but "AIG refused to accept that the market was deteriorating...."
Update: 12/11/09

House Passes Sweeping Financial Oversight Bill with a 233-202 Vote

House Tightens Rules for Wall Street Over Opposition (Update1)

Unfortunately it wasn't in enough trouble.

This thing is full of loopholes.
Again, it seems like people on all sides of the fence are against this from all ends of the spectrum. So again, the House misrepresented the people.

again, Matt Taibbi of the Rolling Stones has his take on it. (Why is the political writer of an entertainment magazine giving better information on the bill than Fox, NBC and WSJ?)

"Then the committee went to work — and the loopholes started to appear.

The most notable of these came in the proposal to regulate derivatives like credit-default swaps. Even Gary Gensler, the former Goldmanite whom Obama put in charge of commodities regulation, was pushing to make these normally obscure investments more transparent, enabling regulators and investors to identify speculative bubbles sooner. But in August, a month after Gensler came out in favor of reform, Geithner slapped him down by issuing a 115-page paper called "Improvements to Regulation of Over-the-Counter Derivatives Markets" that called for a series of exemptions for "end users" — i.e., almost all of the clients who buy derivatives from banks like Goldman Sachs and Morgan Stanley. Even more stunning, Frank's bill included a blanket exception to the rules for currency swaps traded on foreign exchanges — the very instruments that had triggered the Long-Term Capital Management meltdown in the late 1990s. ...

...An even bigger loophole could do far worse damage to the economy. Under the original bill, the Securities and Exchange Commission and the Commodity Futures Trading Commission were granted the power to ban any credit swaps deemed to be "detrimental to the stability of a financial market or of participants in a financial market." By the time Frank's committee was done with the bill, however, the SEC and the CFTC were left with no authority to do anything about abusive derivatives other than to send a report to Congress. The move, in effect, would leave the kind of credit-default swaps that brought down AIG largely unregulated....

...but then again, actual people are not really part of the calculus when it comes to finance reform. According to those close to the markup process, Frank's committee inserted loopholes under pressure from "constituents" — by which they mean anyone "who can afford a lobbyist," says Michael Greenberger, the former head of trading at the CFTC under Clinton.

This pattern would repeat itself over and over again throughout the fall. Take the centerpiece of Obama's reform proposal: the much-ballyhooed creation of a Consumer Finance Protection Agency to protect the little guy from abusive bank practices. Like the derivatives bill, the debate over the CFPA ended up being dominated by horse-trading for loopholes. In the end, Frank not only agreed to exempt some 8,000 of the nation's 8,200 banks from oversight by the castrated-in-advance agency, leaving most consumers unprotected, he allowed the committee to pass the exemption by voice vote, meaning that congressmen could side with the banks without actually attaching their name to their "Aye."

To win the support of conservative Democrats, Frank also backed down on another issue that seemed like a slam-dunk: a requirement that all banks offer so-called "plain vanilla" products, such as no-frills mortgages, to give consumers an alternative to deceptive, "fully loaded" deals like adjustable-rate loans. Frank's last-minute reversal — made in consultation with Geithner — was such a transparent giveaway to the banks that even an economics writer for Reuters, hardly a far-left source, called it "the beginning of the end of meaningful regulatory reform."...

...A masterpiece of legislative chicanery, the measure would have given the White House permanent and unlimited authority to execute future bailouts of megaconglomerates like Citigroup and Bear Stearns.

Democrats pushed the move as politically uncontroversial, claiming that the bill will force Wall Street to pay for any future bailouts and "doesn't use taxpayer money." In reality, that was complete bullshit. The way the bill was written, the FDIC would basically borrow money from the Treasury — i.e., from ordinary taxpayers — to bail out any of the nation's two dozen or so largest financial companies that the president deems in need of government assistance. After the bailout is executed, the president would then levy a tax on financial firms with assets of more than $10 billion to repay the Treasury within 60 months — unless, that is, the president decides he doesn't want to! "They can wait indefinitely to repay," says Rep. Brad Sherman of California, who dubbed the early version of the bill "TARP on steroids."

The new bailout authority also mandated that future bailouts would not include an exchange of equity "in any form" — meaning that taxpayers would get nothing in return for underwriting Wall Street's mistakes.

Even more outrageous, it specifically prohibited Congress from rejecting tax giveaways to Wall Street, as it did last year, by removing all congressional oversight of future bailouts. In fact, the resolution authority proposed by Frank was such a slurpingly obvious blow job of Wall Street that it provoked a revolt among his own committee members, with junior Democrats waging a spirited fight that restored congressional oversight to future bailouts, requires equity for taxpayer money and caps assistance to troubled firms at $150 billion. Another amendment to force companies with more than $50 billion in assets to pay into a rainy-day fund for bailouts passed by a resounding vote of 52 to 17 — with the "Nays" all coming from Frank and other senior Democrats loyal to the administration...."

Sarah Bond just linked a video from Michelle Bachmann regarding Barney Frank's Financial Reform Legislation.

I wrote this up several days ago, this is a shady,shady bill and the media was very quiet about it.

In a market where there's nothing left for banks to steal, Barney Frank and Chris Dodd are busy doodling up the new bank reform. These highly educated sellouts are just crafting wordy legislation to fix, well nothing. ...

In reality, what the banks need is just a modernized Glass Stegall Act, a clearinghouse for commodities especially subprime derivatives just to make sure they're secured this time and most importantly, stop putting the fox in front of the hen house. Which they refuse to do.

Of course not one of the criminals who committed the massive fraud is being put on trail, or being sent to the slammer. but instead are being bailed out with OUR tax dollars.


our legislative branch
our executive branch
the Federal Reserve
the CFTC (Commodity Futures Trading Commission)-led by Gensler
the ISDA (International Swaps and Derivatives Association)-led by Pickel
the Boomer voting base that's overlooking this krap
realtors and speculators who took up good deals to inflate real estate prices to unrealistic levels.
the media- who blows smoke and mirrors to keep the public confused on this crime


the lenders


the taxpayers
the market investors
first time primary home owners who have not been able to afford real estate with legitimate mortgages on real wages

Even back in 2005, money managers (including hedge funds) noticed that many of the subprimes they were sold were not backed by bonds- the way they were supposed to be. They attempted to report this to the CFTC, but the CFTC was not picking up their phone.

So how massive IS this fraud?

The majority of the problems are reflected not in the technicality of the product, but is made obvious as to how the process of regulation is enforced (or not).

Yes, Goldman Sachs owns the Federal Reserve. The Federal Reserve is a privately held institution that is held by several banks, only half which are American. Fine.

But as primary dealers to the Federal Reserve, they are WAY too involved in creating regulation. They have a conflict of interest; again the fox is guarding the hen house.

The institutions that should be involved with this legislation are the hedge funds, money managers and other markets for the subprime derivatives, including international investors, not sellers. Giving the lenders 100% authority with no checks and balances only weighs the law in their favor.

The lenders during the subprime trade were the same banks that owned the Federal Reserve.
the lenders who sold counterfeit subprimes in the 1st place, aka. the" ISDA Industry Governance Committee’s membership".

Does Bernanke have a conflict of interest? YES HE DOES.

But even with the Federal Reserve out of the picture, JP Morgan and Goldman Sachs- just two of the lending institutions that purposely "exposed themselves" (selling counterfeit derivatives) did not go to trial and they're being granted the authority to oversee regulation of the commodities market they just abused!

2/3rd of the ISDA Governance Committee's Membership consists of derivative dealers including but not exclusively JP Morgan, Goldman Sachs and Deutsche Bank. Only 1/3rd consists of the buy(investment) side including Hedge Fund, Insurance Co and Money Managers.

So what happens when you put the fox in front of the henhouse? LOOPHOLES!!!!

"The Crafting of a Loophole


Those who respect the law and love sausage should watch neither being made.

--Mark Twain.

AMENDMENT TO THE PETERSON SUBSTITUTE FOR H.R. 3795 (a) OFFERED BY MR. PETERSON OF MINNESOTA (b) Page 21, after line 25, insert the following:

(19) by adding at the end the following:

‘‘(50) ALTERNATIVESWAP EXECUTIONFACILITY. (c).—The term ‘alternative swap execution facility’ means a service that facilitates (d) the execution ortrading of swaps between two persons through any means of interstate commerce, but which is not a designated contract market (e), including any electronic trade execution or confirmation facility (f) or any voice brokerage facility (g).’’

Now let’s see what went into this legislative sausage.

(a) Everyone agrees that the unregulated “dark markets” of Wall Street’s trading in over-the-counter derivatives such as credit default swaps moved the financial crisis from major problem to total disaster. Currently, most trades in these “products” are privately negotiated on the phone, dealer to dealer. It’s appallingly risky – that’s why we have a multi-trillion dollar bailout. But because the dealers at major banks can quote different prices to different customers, with huge spreads between buy and sell quotes, the banks are making huge profits and want to keep it that way.

So while congress is busy working on reform legislation, Wall Street’s lawyer-lobbyists in Washington are working hard to neutralize such efforts.

Who’s winning? Over lunch across town from Capitol Hill, I recently asked that question of a very smart attorney endowed with deep experience in keeping Washington safe for Wall Street. In answer, he pointed to this seven-line paragraph buried in a 26-page amendment to “HR 3795, Over-The-Counter Derivatives Markets Act of 2009,” passed in a voice vote by the House Agriculture Committee the night before. Following the vote, the committee had issued a press release hailing their vote for “strengthening” regulation.

On the contrary, said my friend, “I guarantee you that not a single member, and almost certainly no one else, apart from the traders on Wall Street and the lobbyist who inserted it on their behalf, understood the significance of this paragraph. It means that nothing will change.”

(b) Colin Peterson (D-MN) is the Chairman of the House Committee on Agriculture. He is on record as asserting “The banks run this place…It’s huge the amount they put into politics.”

(c) An “alternative swap execution facility” is intended by the original drafters of the bill to be a new, fully regulated market for trading over-the-counter derivatives – a technologically enhanced version of the various futures exchanges currently operating, such as the Chicago Mercantile Exchange, where transactions and prices are open for all to see.

(d) A beautiful word. Now the “execution” facility doesn’t have to be an actual exchange. It has just been redefined as merely something that “facilitates” the execution of a swap trade.

(e) Reinforces the point that a “facility” does not have to be one of those transparent exchanges. But wasn’t that what the bill is meant to make happen?

(f) In 2005 the major swaps dealers, under pressure from the New York Fed, set up an electronic “confirmation facility” to keep track of trades, which the dealers control. Not much openness here.

(g) “Voice brokerage.” This means a telephone, as used by a dealer setting prices that are not publicly disclosed. That’s what the dealers were doing the last time they led our financial system over a cliff, and that’s the system that is preserved by this one little paragraph.

With H.R. 4173 – “Wall Street Reform and Consumer Protection Act of 2009.”, voice brokerages, execution facilities...

but YAY! the Government "Accountability" Office gets to audit Fed activities.


If we used the anology "fox guarding the hen house" this is exactly how it will pan out. The Fox is writing all of the rules. The fox will keep the hens for himself and secure derivatives with rubber chickens for everyone else. The fox will make up a bunch of rules so they can manipulate how many rubber chickens can be traded in a day to inflate the value of the hens, etc. Since they're writing the rules, they know too well how to manipulate this. The Fox will deem this "free market" when this is a fascist danger at the expense of the rubber chicken investors, their competition by socializing the fox's losses to the taxpayers as he keeps the "free market" manipulated gains.


Even Ed Harrison from the Huff Po is calling this out.

and Newsweek

Why don't we put the Better Business Bereau's biggest violators in charge of the Consumer Protection Act? Literally, why not have bank robbers legislate security for safe deposits? Let's not stop there! Let gang members have complete control over the 2nd Amendment and let Jeffrey Dahmer fix legislation on how to sentence convicted mass murderers? Infact, Jeffrey Dahmer was just placed on the Victim Witness Assistance Program and other institutions to push for his reform.


Under the new banking reform, a taxpayer supplied umbrella insurance policy will be the business continuity plan every time a bank purposely exposes itself and falls on it's hindquarters. Which will happen again knowing how well the CFTC didn't call out the sale of counterfeit subprime vehicles in the past when it was reported to them.

The saga doesn't end there. The CFTC legislates the entire futures market which not only consists of subprime debts, but metals and other commodities.

A cavalcade of similar letters eventually allowed bank speculators to control entire markets, even though they possessed little or none of the commodity being traded, are not engaged in any legitimate commodity related business, and earn their living by trading back and forth on the futures exchanges.

The bottom line is that CFTC has erroneously allowed hedging against hedges. Translated, they have allowed hedges against speculation, not production. This has become a toxic poison which corrupted the futures markets from their intended purpose.

“Hedging against a hedge” is the ultimate manipulative activity, because it allows the creator of speculative instruments (derivatives) to create unlimited quantities of an imaginary commodity stockpile, taking real supply and demand out of the equation.

More frightening is the fact that, when a firm hedges against a derivative, they will be leveraged on both sides of the transaction, while not being in possession of the real commodity. No rational bank, or other person, can consistently earn a profit, on such risk, especially where a futures contract is subject to a possible delivery demands, unless they are able to manipulate the market up and down.

In spite of all the chatter from CFTC about “reform”, their current concern seems limited to helping derivatives dealers to head off serious limits on speculative activity imposed directly by Congress. Were Congress to enact such limits, derivatives dealers, like Goldman Sachs, would find it impossible to use CFTC staffers to circumvent position limits.

Under the Capitol Hill Circus Tent; Congress and Obama will probably sign this with big grin on their faces, hustling bribes from K Street (lobbyist hub in Washington D.C.) with absolutely no clue or care in the world as to what they just did to the American people.

Obama has already kept Robert Pickel as head of the ISDA after he didn't do his job in the last 10 years. Obama is keeping Gensler and the CFTC around to recreate the counterfeit subprime market. Infact, Gensler helped draft the Commodities Futures Modernization Act which contained loopholes that allowed subprimes to be traded without securitization. Pickel and Gensler are two other men who need to be on trial for the subprime collapse.

Then Arianna Puffington, Paul Krugman, Michael Moore and Naomi Klein will cry that legislative incompetence is the result of capitalism. The liberals will continue to blame dissenters of this policy as redneck racists when it is THEY who fail to understand what is being boycotted.

The people to the right will continue to blame poor minorities and liberal legislation allowing the poor minorities to get screwed by the system; then pray that this will recover the overpriced real estate values.

The political theater is so predictable that one can come up with a pretty good drinking game to their reaction to the mess. Congress and our legislators are complete retards or just blatantly corrupt.

In this picture, she is signing away over $700 billion of our tax dollars to save criminals. She does so with the biggest grin on her face. How big was HER payout?

So San Francisco, JOHN DENNIS is her opponent for 2010. THIS TIME SF HAS NO EXCUSES!!

The employment/population growth dropped 60% in the last decade. (see bottom table "jobless recovery" on Wikipedia).
To the Boomers who don't get it- TARP is not bringing back the housing bubble.

Instant replay...

TARP is not bringing back the housing bubble.

Shady Banking reform is not going to help. Without a stable job market, the counterfeit subprime market is going to fail. The Cost of Living Index was at 180 nationally in recent years. A fair amount is 100. The COLI for San Diego was 220, in San Francisco it was 280 and in NYC it was over 400. The lack of job growth did not enable people to buy legitimate mortgages for these now expensive homes which also pushed many to take out ARM loans to begin with, putting many at the mercy of foreclosing when credit tightened. Also, unemployment hiked and as a result of that more people foreclosed.

Only a stable job market (steady source of income for the borrower) is going to give the real estate market a stable recovery.

TARP IS A WASTE OF MONEY. IT DOES NOT "SAVE THE ECONOMY". All it did was provide liquidity in the market (which is what the Federal Reserve is supposed to do) when the banks that own the fed purposely tossed away their own ability to maintain liquidity. Not that the markets are much more liquid than they were before. Credit lines are still tight. It's a year since TARP has passed.

Seriously, we have to pick better representatives to guard our interest since TARP will be a permanent addition. Until Barney Frank describes how the taxpayers won't be liable for the FDIC's "special fund" to take over banks, we have to assume that this money will be taken from Uncle Sam's coffers somehow. This isn't sound fiscal policy.

Frank said the taxpayer would not be placed at risk, "not according to this bill," he said. "There was some suggestion of that and I've stricken it from the bill." Republicans universally opposed the measure, describing it and the rest of the bill as a permanent bailout for banks.

Until we know where this money will come from, after the initial bailouts and no trial for these criminals; the taxpayers, without our knowledge and consent are 100% exposed to the crimes of the banks.

A blog called "New Deal" came up with great ideas on what a proper, common sense reform would look like.
"1. Prohibit regulated and protected financial institutions from trading derivatives. All financial institutions with access to the Fed’s lending as well as any financial institution with Treasury guarantees on liabilities (such as FDIC insurance) would be prohibited from selling or buying any derivatives. All assets would be carried on bank books through maturity-with full exposure to interest rate, currency, and default risk. That provides the correct incentives to protected lending institutions. Underwriting would be assured-since institutions could not shed default risk through securitization. Any institution that was foolish enough to play across exchange rates (lending in one currency while borrowing in another) would bear the risks. And any that tried to play the maturity curve would be subject to rising short-term rates. Personally, I would put tight constraints on the Fed to avoid another Paul Volcker “experiment” (he killed the thrifts by pushing overnight rates above 20%), but that is a matter for another blog. So forget the attempts to regulate derivatives markets. All that is necessary is to prohibit regulated and protected institutions from playing with them.

2. Abandon “too big to fail” and “systemically important” doctrine in favor of a “too big to save” and “systemically dangerous” approach. It is likely that all the largest financial institutions are insolvent, in spite of their machinations to manufacture imaginary trading profits. So, close them down. It’s the law. Insolvent institutions are supposed to be resolved, at the least cost to the Treasury; all we need to add is a proviso that they must be resolved in manner that does not increase industry concentration. The top 4 banks (BofA, Citi, JPMorgan-Chase, and Wells Fargo) have about half of the industry, and there is little doubt that each is massively insolvent and systemically dangerous. Shut them down. If there is collateral damage, deal with it. Leaving them open not only encourages each to “bet the bank” through excessively risky trades, but also tells all other financial institutions that their only hope is to join the “too big to fail” club through unsustainable growth that requires they adopt the same failing strategies adopted by the behemoths.

3. Forget about regulating the top 3 ratings agencies — they are beyond hope. Instead, prohibit regulated and protected institutions from using any ratings obtained by sellers of securities. Instead, they should be required to purchase ratings services from arms-length professionals, with the top 3 monopolists specifically excluded because they have demonstrated their inability to provide unbiased ratings. Further, make ratings agencies liable for improper ratings, imposing a fiduciary responsibility to actually evaluate any instruments that are rated. The top 3 never actually looked at any of the mortgages that collateralized the securities they rated-it was all too pedestrian for them. As we now know from internal emails, they did not have the loan tapes (the data provided by borrowers), the experience (they had no expertise in rating mortgages-all of their experience was in rating corporate and government debt), nor the time to assess credit risk. And they have never understood how to rate sovereign government debt (on which there is no default risk-yet the ratings agencies provided higher ratings to NINJA loans than to riskless sovereign debt) If anyone wants to purchase debt rated by these nincompoops, I wish them luck. But we must prohibit banks and other protected institutions from purchasing the garbage."

The first bailouts was highway robbery. It was unpopular and Congress still passed it. The same banks that own the Federal Reserve got bailed out and they're on the ISDA Governance Committee.

This bill has to be stopped or we can consider our country an oligarchy, not a democracy.

Cap and Trade + HR 4173 is welfare for Goldman Sachs, it's not about the environment.

First of all, I'm not a certified, accredited scientist so I'm not qualified and I flatly refuse to debate on the actual science of Global Warming. However I want to call out the legislative structure in which Cap and Trade will be imposed on the country. I'm not a political science expert however I can prove that this is a motion set up to gain power and money for just a few, and I can prove this without getting into the science.

First we have to ask ourselves if we are truely living in a populist democracy/individualist republic or are we living in an oligarchy? This is a difficult question and a hard issue to face up to.. If we want to get technical about it; "an Oligarchy is a form of government in which power effectively rests with a small elite segment of society distinguished by royal, wealth, intellectual, family, military, or religious hegemony." (Wikipedia-Oligarchy)

In lieu of Obama's election, many were banking on the hopes that, because Obama's popularity is his strong arm...that he would play up the popular democracy in our favor. With the way our politics is set up, we do have a 4th branch of government, who are the lobbyists and special interests-which could be easily cited as a conflict of interest. Lobbyists bribe politicians for favors so their wishes override the wishes of the population. Which is disgusting since the American citizens paid nearly a trillion more in income taxes than Corporate America did. With their low approval ratings and the passing of TARP, which the majority cited that they were against, the polls showed that our elected Congress has shown no interest in what the people want.

"A new USA Today poll finds that 78 percent of Americans agree that Congress should pass a plan to rescue America’s financial markets, with 56 percent saying the plan should be different from the original one proposed by the Bush administration last week."

"Democrats Not Backing Congress

One reason Congress is doing so poorly in the court of public opinion is that rank-and-file Democrats are providing no support cushion for the Democratic-controlled institution. In fact, Democrats are about as likely to approve of Congress as are Republicans: 20% of Republicans approve, versus 16% of Democrats."

"There's good reason Obama's poll numbers have fallen, most notably his mishandling of the banks, as Henry and I discuss here and in the accompanying clip. Obama may talk tough about "fat-cat bankers" but the actions of his administration suggest policy is still being conducted at their behest."

Why is our government only willing to impose negative incentives to move people to clean the air? I personally drove a very gas efficient economy in the 90's and benefited by not being forced to pay $80 to fill up my tank. This is an INCENTIVE not just for me, but for business minded people to leave fewer carbon footprints and with efficient, affordable technology a perfect model to get people to conserve.

Everybody knows that Republicans respond very well to an incentive based model, especially one where tax breaks are involved. However our government wishes to impose not a rewards based incentive to move people to green energy, but one of punishment. We're in a bad economy.

And yes the economy is still weak, why are the banks even a part of the "solution"?

CapNTrade is going to benefit Goldman Sachs who already own 10% of the Chicago Climate Exchange.

Gensler of the CFTC used to work at Goldman Sachs.
Why is Gary Gensler relevant? He worked at the Commodities Futures Trading Commission which was set up by the Gramm Leach & Bliley Act which disallowed the SEC to regulate the trading of commodities, which subprime derivatives were classified as. When investors tried to report unsecured subprimes to the CFTC, the CFTC never picked up their phones to take the complaints.

Note: Carbon Credits are traded on the Chicago Climate Exchange as commodities and the CFTC wants to regulate them.

"Gensler: CFTC prepared for carbon trading

| Sourced From |

WASHINGTON — Commodity Futures Trading Commission Chairman Gary Gensler told the Senate Agriculture Committee Sept. 9 the CFTC is prepared to oversee a market for trading carbon credits, but that carbon trading would require the cooperation of several agencies and for the CFTC, more staff and new technology."

Goldman Sachs and their friends have a large influence over the derivative and carbon market.

Therefore, the taxes and penalties imposed on Cap and Trade already benefit Goldman Sachs.

With Barney Frank's "financial reform", HR 4173, Goldman Sachs is entitled to another bailout once they screw up on the derivatives market. Remember, the polls showed that the majority felt strongly against the first bailouts in 2008. AGAINST THE WISHES OF THE PUBLIC, They're going to make TARP a permanent mandate available to the banks, solely at the President's discretion.

TARP will come from the FDIC, who gets their funds from the Treasury, aka. you, the taxpayers.

This will be the second set of welfare granted to, um...Goldman Sachs not just limited to the trade of carbon credit backed derivatives but everything else as well.

The media is not reporting on it. The 2010 elections are coming up. You might want to speak up if you oppose the permanency of TARP.

The derivatives dealers had 2/3rds of the influence aka. ISDA Governance Committee. Only the republicans have voted this down but that won't be enough to reject the powerful influence that the banks are using to legislate themselves- meaning the fox is guarding the henhouse.

At least get the taxpayers off the hook, we're not doing anything wrong here. Or do we not live in a democracy?


Happy Holidays.

Friday, December 4, 2009

Unemployment dropped .2 and the U-6 up to 17.6

According to Obama's statistics, the unemployment situation is "getting better". Or at least this is what he wants the Asians to think to hold on to our debt.
The unemployment numbers dropped to 10 from 10.2.

Not too reassuring for the 15 million who are still out of work.

The U-6 is up to 17.6.

How can the ADP and BLS surveys disagree by 150,000+ jobs?

seasonally adjusted number for November 17.2. Non-seasonal =16.4.
Let's look at this economic recovery:
-Are small and medium sized business owners seeing it in greater access to credit?
-Is the middle and working class seeing it hiring and greater numbers of job openings?
-Are small and regional banks seeing it in t...heir treatment from federal regulators?
-Are we seeing it supposed new and better regulation to address the
failings of the financial system (to big to fail banks, systemic risk,
-Are we seeing a turn-around at tax-payer GM, AIG, etc. after the hundres of billions spent?
-increase in exports? Decrease in Imports? Not if the liberals keep blocking domestic drilling!
**on the bright side, Gold dropped on a buy signal. Thanks Obama! **

They're cooking the numbers. So much for Dope and Change!!

Thursday, December 3, 2009

Pelosi's $335 MILLION STD Prevention = 55.8% rise in syphillis cases in San Francisco. Good job Nancy!

Pelosi wrote in a $335 million provision for the STD Prevention clause to the unethical bailouts.

According to the smug mental midgets on the left:

"Some reasons that increased funding for STD prevention specifically will ultimately save the United States money:
– Increase workforce productivity. More than 56,000 people become infected with HIV/AIDS each year. The CDC estimates that the new infections cost the country $56 billion in medical care and lost productivity.
– Lower health industry costs. STDs, some of the most preventable diseases, cost the U.S. health care system as much as $15.3 billion annually.
– Lower federal government costs. The federal government is expected to spend $12.3 billion on HIV/AIDS-related medical care in 2009."

Let's see how well this worked out for San Francisco...

"San Francisco health officials reported an alarming increase in new syphilis cases last year after years of declines."

Wait. Why such an expensive provision in the first place if STD's were already on the decline. You can go to Planned Parenthood to get this information and free condoms. We already subsidize that.

The Center for Disease control and Prevention already has the scoop on how to prevent STD's. Why did Pelosi feel as if she needed to spend more money at a "problem" to begin with?

So this was the outcome of the spending...

"New syphilis cases rose 55.8 percent in 2008 over the previous year, San Francisco public health officials reported."


So basically, the more money we give to Pelosi for her STD Prevention, the more people will end up with STD's in her own district. This causes me to fear what the result of Obama's Healthcare reform will be. Now the taxpayers will be stuck paying for the reckless behavior of STD infected San Francisco idiots.

Although it's only .03% of the useless bailout, that $335 million could have been spent on interest to China, it could have been spent on helping people who have lost homes, it could have been spent to help those that lost their jobs due to the subprime collapse.


Here are the idiots who voted for the bailout with the $335 million STD prevention


Remember, John Dennis is running against Pelosi in 2010 in the 8th District of California, which is otherwise known as San Franciso.
SF, you have no excuses this time!! VOTE PELOSI OUT!!

the 4th branch of our governent, the lobbyists; conflict of interest in our government

In 2007, Corporate America paid the IRS $396 billion in income taxes.
In 2008, Corporate AMerica paid the IRS $354 billion in income taxes.

In 2007, American Citizens paid the IRS $1.366 TRILLION in income taxes.
In 2008, American Citizens paid the IRS $1.426 TRILLION in income taxes.,,id=172265,00.html

The difference between what Citizens and Corporate America pays in income taxes is
$.970 Trillion in 2007 and $1.072 Trillion in 2008.

There's no possible way the lobbyists came up with the difference in order for special interests/corporate America to gain preference over the American citizens.

The Directory:

"We're receiving E-mails from Capitol Hill staffers expressing frustration that they can't get a copy of the stimulus bill agreed to last night at a price of $789 billion. What's more, staffers are complaining about who does have a copy: K Street lobbyists. E-mails one key Democratic staffer: "K Street has the bill, or chunks of it, already, and the congressional
offices don't."

K Street is a hub for major lobbyist firms in Washington D.C.,_d.c.%29.htm,_D.C.%29

Monday, November 30, 2009

ClimateGate; Cap and Tax Fraud.

Just found this:

Is there any possibility that the tobacco tax was a punishment to tobacco for helping out the climate change?

Some Tobacco representative was showing Exxon people how to argue their case against Climate change.

See pg. 44

The media is trying to censor this out.

The NY Times reported on the hacked emails.

They directed us to this link featuring the emails that were hacked.

Data dumped

Some more links...

The early Christmas present in the form of hacked emails at the University of East Anglia just gets better and better. Further substantiating the HOAX of Global Warming, scientists admit dumping raw temperature data...and only keeping "quality controlled" data:

"This is the worst scientific scandal of our generation." Need we say more? Great article out of the UK:

Miss the original reports of Climategate this week? Catch the early scoop here:

And here:

More from local blogger:



Five lawmakers resign over carbon tax:



Gee, the Climate Czar neck deep in carbon offset trading? Say it isn't so...



The President is determined to drag some kind of Climate Treaty across the finish matter how unpopular with tax payers or even the Senate. The political wind is at our backs on this one, so keep up the pressure on the Senate to reject any UN treaty coming out of Copenhagen. Chances are Obama won't bring home anything that will please the Right OR the Left:



Here is the petition to repeal AB 32, California's Cap and Trade, please visit to sign...and share with everyone you know:





Just because the Stock Market settled its initial jitters regarding Dubai last week, keep your eye on this one...feels an awful lot like the early days of the housing collapse:



And doesn't Brown sound like Barney Frank in this recording?







Surprising editorial from a paper that is in Jerry Brown's corner:



Never underestimate the power of pop culture as a barometer of political momentum. Last Saturday was in our opinion, a key turning point in public sentiment regarding runaway spending and bailouts. We will share the following SNL clip not to degrade the President or the First Lady, but because the writing is so pointedly critical of Congress, the Administration and the irresponsible policies that are threatening to bankrupt this nation. When Left leaning SNL and the nation is fed up enough to laugh at Cash for Clunkers and Universal Healthcare, we are moving in the right direction...


Denial is just a river in Egypt.


Here's Fox's take on it.

But we all knew that this was a big hoax when Congress proposed the CowFart Tax.

Obama, a Traitor?

Oh dear, it's politics again! Everything is political which is the problem in our country. The political involvement in finance is an overreach and an abuse of power. But it is consistant with the actions under our new administration.

-Obama charged with Treason in Tennessee.

-Army says dispatch of MPs to Samson murders in March violated federal law
By The Associated Press
October 19, 2009, 6:02PM

-He's also President of the UN Security Council without Congress' approval (that we know of) which violates Article 1 section 9.

"No Title of Nobility shall be granted by the United States: And no Person holding any Office of Profit or Trust under them, shall, without the Consent of the Congress, accept of any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince or foreign State."

Obama is the 1st American president to hold the Presidency of the UN Security Council. What is he doing there? He might cross paths with Gaddafi? The press celebrates every time this man wipes his ass. Why was this hidden by the press?

Let's not forget the other abuses of power. Obama paid the media off to smear political oppositions, muffling dissent and the 2nd Amendment.

-The press was bought out.(propoganda/censorship)

1. GE owns NBC and Obama gave GE a nice taxpayer funded $126 bailout to shill on his behalf.


2. The MSM non-profits like Air America, NPR and Media Matters receive funds through the Democracy Alliance which is funded by George Soros. Soros paid off the media and kind of bought Obama's presidency.

-Obama is begging for donations to smear Palin.

-Eric Holder is hiring people on the Dept of Justice to anonymously post comments to shape public opinion about Obama.

-He's using the head of the DHS department Janet Napolitano as a political attack dog when Hasan snuck under her nose on the Homeland Security task force, resulting in the unnecessary and untimely deaths of 13 American soldiers.

The bailouts are strings tied to the banks, auto it will be cap and trade and the healthcare sector. He has questionable ties to George Soros who seems to be trying to push the American dollar off a cliff while raising the price of oil for his own profits. In the middle of a very bad recession.

The U.S. Constitution was written to protect the people and our freedoms. Obama said he hated that piece of paper yet gave no indication on what he saw as a protection of the American people.

Obama is a control freak, he has abused his power, he is hated for using his position to smear private citizens...the guy is a real shady jackass and I hope he steps down SOON.

Audit the Fed? Sure but is it enough?

Months ago Alan Grayson asked Bernanke which foreign banks got a $500 billion loan. Bernanke replied, "I don't know".

Did somebody really make an electronic run on the banks?

Of course audit the Fed.

But my problem is that auditing the Fed is not going to be enough. It takes too much pressure off of the President, Congress and the Senate for their own conflicts of interests, aka. special interests and lobbyists who work against American citizens. Auditing the Fed is not necessarily a red herring, it's only part of the problem.

Look, the American citizens gave Uncle Sam $1.34 trillion in income taxes in 2007. Corporate America gave Uncle Sam a lousy $300 billion plus BRIBES that year. They got preference because the bribes went straight to the legislators.

If Americans wanted to change things for the better, we have to address the context of bribery and a conflict of interest and limit that with our politicians. We are entitled to our representation, everyone on Capitol Hill should be sued for going against their contracts.

Why haven't Fuld and Mozillo been placed on trail YET? We need Congress to testify, we also need Dubya, Paulson and Bernanke to testify.

The employment/population growth dropped a staggering 60% in the last decade, which is why so many people foreclosed on their homes to begin with. (see table at the bottom of "Jobless Recovery" on Wikipedia) Guess what? A lack of jobs creates foreclosures. Gen Y is most adversely affected by these statistics and without jobs (less inflation) Gen Y doesn't have the capacity to lessen the fiscal burden to bail out criminals and foreign banks.

There are so many things that we need to nail our legislators for. Save America, Bomb K Street i say! (K Street in Washington D.C. is a major hub for lobbyists).

Friday, November 27, 2009

Leftist Media Propoganda- paid for by taxpayers and tycoons

The press was bought out.

1. GE owns NBC and Obama gave GE a nice taxpayer funded $126 bailout to shill on his behalf.

2. The MSM non-profits like Air America, NPR and Media Matters receive funds through the Democracy Alliance which is funded by George Soros. Soros paid off the media and kind of bought Obama's presidency.

Obama is no Mao. Soros is no Mao.
Mao hated free thinkers and wacky people. He hated the free thinking "liberals" so much that he had many of them killed off. The last 2 years caused me to sympathize with Chairman Mao, although i hated his politics.

Sunday, November 22, 2009

Strange occurances: Hasan's massacre, the KSM trials, the PBR Brazil shares, Healthcare Reform and Palin

After Napolitano declared suburbanites and family gatherings at "tea parties" dangerous; Hasan KILLS 13 troops as an act of terror. Is this an attempt to scare people away from joining the military? Is this intended to create mistrust within the ARMY? Funnier yet, sources cite that the CIA dismissed suspicion on Hasan because it was a benign case.

Here's a soldiers' arguement to the PTSD excuse the left winged media gave on behalf of Hasan. Knowing that a financier of the left thinktanks hates Israel, it's not suprising to see the left AND THE PRESIDENT take mercy on the killer.

The left winged media hacks, including Media Matters and the Huffington Post first pointed fingers at right winged extremists to draw attention away from the fact that Napolitano FAILED to do her job. She was instead acting as Obama's attack dog.

I'm not white. I grew up as a minority and I attended tea party rallies. My only complaint about them is that they didn't protest the bailouts. But who takes the elderly and their children to a riot? If people thought it would be at all dangerous, families wouldn't be going.

After Susan Roesgen of CNN antagonized protestors, Norah O'donnell of MSNBC antagonizes a 17 year old for wearing an "anti-bailout" t-shirt to a Palin book signing event.

Now they're picking on Palin "because of the healthcare reform". Um, hello idiots she's not on the senate or the Congress, she can't vote for it.

Organizing for America is begging their people for $500,000 in donations just to smear her. Did Soros stiff them? And is pushing their supporters to include a Public Option, creating an illusion of a division within the left. This donation does not intend to rationally explain such a huge piece of legislation to the people, but just to smear Sarah Palin!!! No the GOP isn't full of saints, however this action taken by the left seems a little irrational to say the least.

The Soros equation is much too disturbing. Okay he literally bought Obama's presidency. His non-profit ANWR have been boycotting Exxon. Expert of nothing Shannyn Moore has been blogging incessantly about the horrors of the Exxon spill that happened TWENTY YEARS AGO... then she babbles on about how that "b*tch Sarah Palin" was busy signing an oil deal with Exxon for Alaska. Good for Sarah if she did.

Soros was also invested in PBR, an offshore drilling company headquartered in Brazil that just signed a mac deal with China for oil.

He recently let go of a few shares (November 16th and on November 18th, there are talks about a strike in PBR Peru Did Soros send the SEIU down that way? This is the oldest trick in the book on how to increase oil prices.

Mind you, China has 1.7 billion people and Warren Buffet just made a billion dollars off of investments in Chinese Auto sales. They're also driving Hummers.

There are only 300 million Americans. China has 4-5 times the size of the U.S. population that will drive up the demand for oil. The increased prices in oil 2 years ago was due to international oil speculation based on that prediction...the left avoids mentioning this.

Lower supply of oil = higher gas prices. Lower valued US dollar = higher gas prices + increased trade deficit
unless we can drill for our own.

I'm sure you're aware that Soros financed the Democracy Alliance and many of the left wing non-profits. You're probably aware that he knew when Media Matters would stop rallying against Halliburton so he knew when to buy up shares So much for an Israel hating Jew.
I'm sure you know how well he profited from the subprime collapse, the collapse of the British pound in the 90's and the collapse of the Bhat.

His media has been quite forgiving of the muslim terrorists.
The KSM trial is an inappropriate time to object a death penalty, they're pushing buttons on the right.
In 1998, H.R.4655 was formed by Congress to establish a program to support a transition to democracy in Iraq.

The angrier the left appears, the more suspicious their motive is. They're probably just taking his money while waiting for him to die.

Something tells me that Palin isn't the target for healthcare reasons. They're rushing a large piece of legislation, not explaining it to the people but antagonizing anyone that gets in their way. Something is very wierd about this.

I pray for her safety and her success. I pray for our country and it's citizens.

Wednesday, November 4, 2009

News has always lied about economic recovery-May The Great Depression be the Great Lesson

1. "We will not have any more crashes in our time."
- John Maynard Keynes in 1927

2. "I cannot help but raise a dissenting voice to statements that we are living in a fool's paradise, and that prosperity in this country must necessarily diminish and recede in the near future."
- E. H. H. Simmons, President, New York Stock Exchange, January 12, 1928

"There will be no interruption of our permanent prosperity."
- Myron E. Forbes, President, Pierce Arrow Motor Car Co., January 12, 1928

3. "No Congress of the United States ever assembled, on surveying the state of the Union, has met with a more pleasing prospect than that which appears at the present time. In the domestic field there is tranquility and contentment...and the highest record of years of prosperity. In the foreign field there is peace, the goodwill which comes from mutual understanding."
- Calvin Coolidge December 4, 1928

4. "There may be a recession in stock prices, but not anything in the nature of a crash."
- Irving Fisher, leading U.S. economist , New York Times, Sept. 5, 1929

5. "Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months."
- Irving Fisher, Ph.D. in economics, Oct. 17, 1929

"This crash is not going to have much effect on business."
- Arthur Reynolds, Chairman of Continental Illinois Bank of Chicago, October 24, 1929

"There will be no repetition of the break of yesterday... I have no fear of another comparable decline."
- Arthur W. Loasby (President of the Equitable Trust Company), quoted in NYT, Friday, October 25, 1929

We feel that fundamentally Wall Street is sound, and that for people who can afford to pay for them outright, good stocks are cheap at these prices."
- Goodbody and Company market-letter quoted in The New York Times, Friday, October 25, 1929

6. "This is the time to buy stocks. This is the time to recall the words of the late J. P. Morgan... that any man who is bearish on America will go broke. Within a few days there is likely to be a bear panic rather than a bull panic. Many of the low prices as a result of this hysterical selling are not likely to be reached again in many years."
- R. W. McNeel, market analyst, as quoted in the New York Herald Tribune, October 30, 1929

"Buying of sound, seasoned issues now will not be regretted"
- E. A. Pearce market letter quoted in the New York Herald Tribune, October 30, 1929

"Some pretty intelligent people are now buying stocks... Unless we are to have a panic -- which no one seriously believes, stocks have hit bottom."
- R. W. McNeal, financial analyst in October 1929

7. "The decline is in paper values, not in tangible goods and services...America is now in the eighth year of prosperity as commercially defined. The former great periods of prosperity in America averaged eleven years. On this basis we now have three more years to go before the tailspin."
- Stuart Chase (American economist and author), NY Herald Tribune, November 1, 1929

"Hysteria has now disappeared from Wall Street."
- The Times of London, November 2, 1929

"The Wall Street crash doesn't mean that there will be any general or serious business depression... For six years American business has been diverting a substantial part of its attention, its energies and its resources on the speculative game... Now that irrelevant, alien and hazardous adventure is over. Business has come home again, back to its job, providentially unscathed, sound in wind and limb, financially stronger than ever before."
- Business Week, November 2, 1929

"...despite its severity, we believe that the slump in stock prices will prove an intermediate movement and not the precursor of a business depression such as would entail prolonged further liquidation..."
- Harvard Economic Society (HES), November 2, 1929

8. "... a serious depression seems improbable; [we expect] recovery of business next spring, with further improvement in the fall."
- HES, November 10, 1929

"The end of the decline of the Stock Market will probably not be long, only a few more days at most."
- Irving Fisher, Professor of Economics at Yale University, November 14, 1929

"In most of the cities and towns of this country, this Wall Street panic will have no effect."
- Paul Block (President of the Block newspaper chain), editorial, November 15, 1929

"Financial storm definitely passed."
- Bernard Baruch, cablegram to Winston Churchill, November 15, 1929

9. "I see nothing in the present situation that is either menacing or warrants pessimism... I have every confidence that there will be a revival of activity in the spring, and that during this coming year the country will make steady progress."
- Andrew W. Mellon, U.S. Secretary of the Treasury December 31, 1929

"I am convinced that through these measures we have reestablished confidence."
- Herbert Hoover, December 1929

"[1930 will be] a splendid employment year."
- U.S. Dept. of Labor, New Year's Forecast, December 1929

10. "For the immediate future, at least, the outlook (stocks) is bright."
- Irving Fisher, Ph.D. in Economics, in early 1930

11. "...there are indications that the severest phase of the recession is over..."
- Harvard Economic Society (HES) Jan 18, 1930

12. "There is nothing in the situation to be disturbed about."
- Secretary of the Treasury Andrew Mellon, Feb 1930

13. "The spring of 1930 marks the end of a period of grave concern...American business is steadily coming back to a normal level of prosperity."
- Julius Barnes, head of Hoover's National Business Survey Conference, Mar 16, 1930

"... the outlook continues favorable..."
- HES Mar 29, 1930

14. "... the outlook is favorable..."
- HES Apr 19, 1930

15. "While the crash only took place six months ago, I am convinced we have now passed through the worst -- and with continued unity of effort we shall rapidly recover. There has been no significant bank or industrial failure. That danger, too, is safely behind us."
- Herbert Hoover, President of the United States, May 1, 1930

" May or June the spring recovery forecast in our letters of last December and November should clearly be apparent..."
- HES May 17, 1930

"Gentleman, you have come sixty days too late. The depression is over."
- Herbert Hoover, responding to a delegation requesting a public works program to help speed the recovery, June 1930

16. "... irregular and conflicting movements of business should soon give way to a sustained recovery..."
- HES June 28, 1930

17. "... the present depression has about spent its force..."
- HES, Aug 30, 1930

18. "We are now near the end of the declining phase of the depression."
- HES Nov 15, 1930

19. "Stabilization at [present] levels is clearly possible."
- HES Oct 31, 1931

20. "All safe deposit boxes in banks or financial institutions have been sealed... and may only be opened in the presence of an agent of the I.R.S."
- President F.D. Roosevelt, 1933

Colin J. Seymour, June 2001
20 June 2001

Barney Frank pushes TARP on Steroids

Resolution Authority for Large, Interconnected Financial Companies Act of 2009, see section XII

Or the piece of shit legislation that's too long for an acronym. THis is giving banks even more cushion to fall on everytime they mess up. Volcker calls it "TARP on STeroids". ...

So none of the Wall Street Tycoons have been sent to the Slammer. They're not on house arrest, not in jail... they're probably floating their funds offshore and doing everything before the uprising.

But while our government is taking out taxpayer dollars to save their hides, they're enacting legislation that will permanently make taxpayers liable to the screw up bank CEO criminal tycoons as they ruin our financial system.

Barney Frank and Chris Dodd needs a lobotomy. The idiots in Congress needs to go on trial. I wish I had the resources to start a "People vs. the Government" suit.

So the FBI is "investigating"? This problem was created by our government. Phil Gramm (Deregulation- other faulty legislation that enabled the crimes to occur), Christopher Cox (Securities Exchange Commission-see items ie. Rule 10b-21 which is a corrupt way to use legislative authorities backed by the US Government), Robert Pickel (International Swaps and Derivatives Association), Gary Gensler (Commodities Futures Trading Commission), Henry Paulson and Ben Bernanke are all Government officials that need to be in prison for causing the Greatest Financial Scandal in the History of the World. Congress is an accomplice.

Government was the enabler. And of course Barney Frank is "staying the course". Massachussets, please vote him out.

Andrew Jackson's Bank Veto discusses his concerns about concentration of power and the abuses within.

Thursday, October 22, 2009

Naked Shortselling/financial terrorism- the Clue that solves the murder of Bear Stearns

Matt Taibbi wrote another masterpiece called WALL STREET'S NAKED SWINDLE elaborating on the crime that was executed by placing naked short sales against Bear Stearns.
Here's a quick lesson on short selling and naked short selling. Short selling is borrowing shares (often held on margin by another investor who is long that same position), then selling them in the market at a high price and buying them back at a low price.

Naked short selling is really selling short without borrowing these shares then buying them back. It's illegal because obviously there are no shares to borrow. But Regulation Sho allowed this to happen for the market makers and of course the SEC tbrew some loopholes in there to enable somebody to make naked short sales against Bear Stearns, forcing the price of Bear Stearns stocks way down.

I believe the SEC (not Congress) comes up with it's own legislation.

SEC Chairman Cox cited that the collapse of Bear Stearns was due to a "crisis confidence" after the SEC conciously overlooked the naked short selling. The "crisis confidence" sounds too much like Carter's malaise speech.

Bear Stearns did not die of a "Confidence Crisis", it was murdered by naked short selling of somebody who wanted it to fail. There are way too many interesting connections involved with this crime.

The aforementioned article notes a suspicious meeting between the big wigs at the NY Federal Reserve with these Wall STreet big wigs including Rubin (representing Citigroup) excluding Bear Stearn reps...happened on Mar 11. Both Geithner and Bernanke were employed with the NY Federal Reserve at the time. Bear Stearns collapsed on March 16th.

Let's the Alan Schwartz connection. Some how he became sole president and COO of Bear Stearns after Warren Spector was forced to resign. He took over the when the stock was trading at $75/share and after it's merger with JP Morgan the stock declined to $5/share. This alone is a sketchy affair.

Per "Bear Stearns" on wikipedia, it was Treasury secretary Paulson and Bernanke who told Schwartz to sell JPM on Mar 16, 2008 stating that Bear's bankruptcy would cause massive economic problems and sell offs.

"Bear Stearns' liquidity pool started at $18.1 billion on March 10 and then plummeted to $2 billion on March 13."

After Schwartz sold BSC to JP Morgan, he was later confronted by an angry Sr. Trader at the company gym. The information about Alan Schwartz I got was under his name on Wikipedia.

Here's some trivia:György Schwartz is George Soros' real name. Is there any relation between George and Alan Schwartz per chance? Do they know eachother? Blood relatives? Relatives by marraige? Did Alan Schwartz oversee the company just to make sure it crumbled? I'm rushing to conclusions, however without a real investigation we have no story.

Beginning during the Clinton administration, every piece of legislation that should've prevented the greatest financial scandal in the history of the world was altered with "loopholes" so that it was enabled.

Evidence#1: the Commodities Futures Modernization Act allowed the subprime derivatives to be "regulated" by the Commodities Futures Trading Commission- another useless bureacracy that is not the SEC. Republicans Gramm, Leach and Bliley wrote this mess up. This happened at the same time when Clinton wrote NAFTA with China. The subprime market, or "housing" was the economy. The subprime credit was the "money supply" that replaced cash that was going disappearing to China (and other countries) in a trade deficit.

Evidence#2: Regulation Sho enacted too conveniently in 2005 created loopholes that enabled traders to make naked short sales against Bear Stearns.

Evidence#3: Bernanke lowered interest rates in 2004 when the economy looked good ($14 trillion GDP) to push the sale of ARM loans. When the economy is good, the Federal Reserve traditionally raises the Federal Reserve Rate to prevent inflation and lowers inflation (cheaper credit) to stimulate the economy. Lenders got their financing inventory by selling subprime derivatives to investors.

Evidence#4: Robert Rubin, Clinton's former Treasury Secretary Opposed regulation of credit swaps; fought to overturn Glass-Steagall Act, leading to creation of Citigroup, where he later made $115 million

Evidence#5: The Commodities Futures Trading Commission overlooked counterfeit subprime assets (that taxpaers were forced to give value to, to bail the banks out).

Yes they have probably taken bribes from lobbyists, including banks to write these loopholes in. Rubin made money from his crimes in direct investments. He also went to work for Citigroup. Where does his loyalty lie?

Not one CEO or individual involved with this mess was investigated, put on trial or thrown in jail for fraud, conspiracy and grand larsony (theft-heist-mobbing-robbery). Yet the Bernie Madoffs, Ken Lays, Raj Rajaratnam and others are busted for insider trading in high profile crimes. Yet Sandy Weill, Phi Gramm, Joe Cassano, Robert Rubin, Ben Bernanke, Alan Greenspan, Jimmy Cayne, Chris Cox, Angelo Mozilo, John Thain, Dick Fuld, Ken Lewis, Lloyd Blankfein and others have not been tried for this unspeakable act. The unsecured subprime derivatives and naked short selling (without delivering the stocks) is counterfeit. It's fraud. And this fraud happened in large quantites. Yet no news of a trial.

Infact, Gramm is a VP at UBS AG in the investment division and McCain's economic advisor during the campaign. And Obama turned to Rubin for advice on the subprime collapse.

These officials are in bed with the banks. Many of these people need to be in prison.

Here is more incriminating evidence. Former Treasury Secretary (who served under Ronald Reagan) Dr. Paul Craig Roberts tells Max Keiser that the Treasury Secretary works for the banks.
Chances are that he might be telling the truth. Isn't the TS supposed to take orders from the COC on behalf of the American people? Bernanke lowered interest rates to help lenders push ARM loans in 2004. Who does Bernanke really work for as Federal Reserve Chairman? And why are taxpayers forced to eat losses through Madison Lane LLC?

Here is another question about the lenders who sold subprimes to increase financing activity for these ARM loans;
-the value of the USD dropped below the Canadian Dollar in 2007
-job/population growth dropped. This was bush's "jobless recovery"
-unemployment triggered foreclosures before the subprime collapse happened.

Why were they leaving themselves exposed by selling subprime assets that were not secured? Who came up with the business model that you increase financing inventory backed by counterfeit assets in an economic downturn? How did the Case schilling index determine that we had a "great economy" when the cost of living was over 180 for most of the country? (the cost of living index includes the price of real estate- a fair price is 100).

Now we know why the naked short selling of this incident is a major clue in the greatest financial scandal in the history of the world.

Electric Run on the Banks-According to Rep Paul Kanjorski @ 2:21

Here was a comment made on the video:???"
Please note: Kanjorski had the briefing with Bernanke and Paulson on "15th of September". The event itself, the landslide electronic cash draw, happened on "Thursday"- meaning the preceding Thursday no doubt.
Thus the date and time when those 550 billion $ were being electronically drawn out was Thursday, Sept. 11th 2008, at 11.00 o´clock in the morning.
This is the 7th anniversary of the Terror attacks, to the minute."

There is a paper trail for this which isn't disclosed to the public. In finance, there's a record for everything after the Patriot Act was signed into law. The HUD database knows your occupation, the type of loan you financed your mortgage with, whether or not it was your primary/secondary occupation, etc. The brokerages need the same information that's on your driver's license to invest for some reason- this is especially true if you're holding a tax deferred retirement account at a trust firm/brokerage. The people who trade with subprime assets may not be as transparent, but somebody has access to this information.

What's even more frightening, is that now China has us by the balls with their derivative default stance. And Geithner told the American people to watch our money habits. Gees Geithner, it was Goldman Sachs who were trading bubble gum wrappers. Many of us don't really have money to manage.

We have bad blood running our country with antagonism, division, a bad economy & propoganda.

Per George Carlin,
""They don't want ppl smart enough
to figure out how bad they're getting fucked by a system that threw them overboard 30 yrs ago. They want obedient workers 2 passively accept shittier jobs...REDUCED benefits, and VANISHING PENSION that disappears the minute you go to collect it.
AND NOW, they're coming for your social security to give to their criminal friends on Wall Street. And, you know something, THEY'LL GET IT! ~G Carlin"

Wednesday, October 21, 2009

What the heck is our country going through?

So here's what's going on in the world. Korea's WON is up, China's economy is up 8.9%, a bunch of insiders got busted by the SEC, Bernanke is calling the trade deficit a problem, bank CEO's are getting record breaking bonuses, money is almost free and gas prices are on the rise. The usual.

Basically, we're experiencing a bunch of melodrama in the news while the economy takes a turn for the worst.

But somebody is having a hissyfit. Either it's Czar Obama or Soros, it's too hard to tell. Typically I avoid politics, because much of it is theatre. But what is Obama's problem? He's running after some Cophenhagen Treaty, tossing OUR taxpayer money at 3rd world countries, the MSM is aggressively attacking opposition and the White House officially puts Fox News on their "enemies" list. Here's the Fox coverage of it

Meanwhile Obamadrama is having a qualm with Army Commmander McChrystal over troops in Afghanistan,

What is with all of this melodrama? What president in the history of mankind stirs melodrama with his own people? Good grief.

Obama, America has two seperate parties in order to perform checks and balances for the American people. Well when they're not too busy being bribed by special interest and remember who the government collected $1.34 trillion worth of income taxes from. Republicans, by it's initial purpose promotes individual liberties, vs. collectivism. That's who we are, that's the reason why we exist and that's what we do.

Suffering opposition is called performing checks and balances. Unfortunately our Congress has no real republicans - just rinos. Today's republicans are really a figment of Obama's imagination.

Infact, I can argue that Bill Clinton is a bigger Republican than Snowe is, and he's kind enough to just call himself a democrat- just to spare us of suffering yet another RINO.

Back to the point. Suffering opposition is a part of the President's job. If Obama didn't want the job, why did he impose such an insufferable campaign for 2 long years to get the job in the first place?

This is one of the main reasons why I personally have an issue with overcompulsively campaigning, nasty tempered Soros. How much propoganda can be considered overkill? Does overbearing mean anything to him?

If Obama wanted the job, why is he whining about it? If he can't take the heat, get out of the kitchen. If he can't handle a viewpoint that varies from his own, he can't handle the job. We want our economy in better health, we want a secure country and one thats' managed properly. Not a Jerry Springer style entertainment from the White House. I personally regard Obama as a low class individual that lacks any set of ethics, morals and maybe competancy to carry out his duties.

And I greatly hope and pray that this drama queen steps down before the end of this year.

Tuesday, October 20, 2009

Keynes and Trade deficit

I've been bringing up the trade deficit as the main cause of the bad economy. It has taken money(preinterest/preinflation money) out of the supply and out of circulation .

Keynes said much about interest rates, but nothing on taxes during a time of deficits- or a "shortage of money"; which can't be adequately replaced by credit.

See Pg. 196-217.

Underneath the Old School English lies Keynes' stratgies, one involving a combined currency to fix the problem-which didn't fly over well with today's economists.

I'm bringing this up because too many Keynesian hypsters (who never read his writings) parrot the phrase too conveniently erroneously as if the Laffer strategy was the entire scope of Keynesian economics.

I like Keynes, I like his style. I have a problem with the way his methods are taught in univerities.

They teach Keynesians as an absolute way of thinking, not as the strategy that it is. The University professors teach only small parts of Keynesian as a major topic without mentioning that Keynes is an entire complex set of strategies built generally around Adam Smith's Model of the Invisible Hand.

This is the way I was taught, and it's probably cause for the masses in the business world to not question the media and their politicians on why a strategy is being used to "stimulate the economy".

Like mentioned before, Keynes himself gravely addressed the issue of trade deficit. Never did he say "tax the people" during this time of wealth depletion from the middle class as Bartlett may lead you to believe. CNN is not a trustworthy site for journalism unless you can calm your stomach during intense vertigo. The context contains way too much spin it's pointless for the articles to exist in the first place.

Keynes never said "create inflation and an unsecured credit market as the new currency- and ignore the trade deficit". The Obama Dream Team should take notes.

If for anything, not to treat us out here as if we were born yesterday. Americans are not "dumb". We're terribly misinformed.

Stick with fundamental education before you read the news. And never be intimidated or afraid to question your sources. FUD=fear uncertainty and doubt is a too common tactic to cause oppostion/competition to question the legitimacy of their statements.
It's only a tactic, the average person may prove to be smarter than they're made to feel about themselves.

Wednesday, October 14, 2009

The Dow rallied over 10,000 points today. Where did our purchasing power go?

Today's 10000 points on the Dow = 7700 points on the Dow in 1999.
There was a 25% decrease in the value of the dollar in the last 10 years.

In 1999, the Dow was at 9500-11500 in 1999 dollars.

In 1999 dollars, we're still down 2000 points.

Today's gas=$3.00/gallon.
In 1999, that same gallon would be adjusted to appx. $2.25/gallon.

Back in 1999, each gallon of gas was $1.65/gallon after a steep hike in prices in California.

We still haven't touched on the cost of living index, deficits, tax hikes, unemployment epidemic and employment/population growth yet.

The sick part is that your children will be paying for this rally.

Tuesday, October 13, 2009

PBR for Soros, it's Pappa's Feeding Time; it was about oil not the environment

Remember our dear friend George Soros? The guy who paid the MSM to pimp Obama? Well, it's payback time!

Obama is having the US Import Export Bank loan a bunch of dough to Petrobras-OFFSHORE DRILLING in Brazil. Soros is the beneficiary. The libs say that this is not tax money, they even created a factcheck page about it. The Import/Export Bank doesn't make it clear where they get their financing inventory from.

Obama is loaning them money to drill offshore so they can sell oil to us! Instead of us drilling for our own oil.

So how does any one offshoring oil company even reflect a stock decline when both China & India are both in the market for oil? Soros closed and reopened his position in Petrobras in August.

Soros blames Ethanol taxes from both the US and Europe. Um, whatever happened to drilling in Alaska?

What happened to the drilling in Utah?

The Department of the Interior has frozen oil and gas development on 60 of 77 contested drilling sites in Utah, saying the process of leasing the land was rushed and badly flawed.

That would've been great for the US Economy. The Alaskan Wilderness League and Natural Resources Defense Council are both non-profits! Is anybody suprised?

They owe a big debt to Sugar Daddy for getting Obama into office. Mind you, this has nothing to do with helping the U.S. Economy, helping the \the US Dollar get it's value back, nor does this help the American unemployment rate or the American citizens.

Now Brazil gets the Olympics & their economy is being hyped (pump and dump for Soros!).

Remember, Soros also hangs out with Russia (see Open Society Institute), but the liberals aren't saying one thing about them drilling offshore.

Brazil and Russia are a part of BRIC (Brazil, Russia, India and China).

Isn't it funny how politics just seems like really bad theatre at this point?

BTW, China's auto sales are up 78% and China signs a trade pact with Russia.

POP! Goes the Greenback-Intentional? BRIC and Soros may know.

The dollar has been on the decline since Clinton left office with a trade deficit; mostly due to our trade with China. The value of the US Dollar somehow became valued lower than the Canadian dollar in 2007, right before the subprime collapse.

So Obama came into office and Zollick, the World Bank President is questioning whether or not to keep it as a reserve currency.

So we are in a dangerous position here. We are in a weakened position; China can easily impose financial warfare against us if they wish at this point. Shall we look at how they're dealing with questionable oil trades?

Just this September, China has threatened a derivative default.

BEIJING, Sept 29 (Reuters) - A group of Chinese state firms, with the backing from the state assets watchdog, have launched a contract war against their foreign banks, threatening not to pay out loss-making derivatives deals they claim were unfair.
Arguing that they were mis-sold risky and unnecessary oil options, China State-owned Assets Supervision and Administration (SASAC) this month took the unprecedented step of warning banks that state corporations could default or sue, appearing to give Beijing's seal of approval to tearing up derivative deals worth an estimated several billion dollars to the banks.

But as I mentioned before, China buys US Treasuries to keep the US Dollar propped above the Yuan in order to keep the their exports cheap. Ron Kirk has been fabulous in addressing the WTO diplomatically about China's trade war against the U.S. Although they grossly understate the trade surplus given to them by the U.S.

Defaulting on our debt to China isn't going to be pretty.

So how does Obama "fix the problem?" By spending more and...

"President Barack Obama has increased U.S. marketable debt to a record as he borrows to reignite growth in the world’s biggest economy. That’s boosted speculation increased money supply will debase the currency and spur inflation."

So what is "record"?

On October 8th, 2009,
"President Barack Obama increased the nation’s marketable debt to an unprecedented $7.1 trillion as the government borrows to revive growth. Goldman Sachs Group Inc. predicts the U.S. will sell about $2.9 trillion of debt in the two years ending next September."

Don't worry. Asia stepped in to save the day, or China's hide.

"Asian central banks jumped in to prop up the dollar on Thursday as it slumped to a 14-month low against leading currencies."

Now Bernanke begins his case for the US Dollar, claiming that a world reserve currency will weaken the US Dollar.

Now wait a second!!!

On June 3rd, 2009,

"Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. dollar did not face a near-term risk of losing its reserve currency status and that ensuring a strong U.S. economy was the best way to keep the dollar strong."

Asia has officially done more than Bernanke and the Obama Administration combined to keep the US Dollar afloat.

So what are the other problems with a weakened dollar? Inflation? What about increased oil prices? OPEC will push for a world reserve currency that they can price oil in, or they can price oil in Euros or even Yen if they please.

But then again, Obama's keeping the oil production to foreign sources, not local ones. Ask Brazil.

Now remember, Soros bought Obama's presidency. He profitted from the crash of the British Pound and the Thai currency-the bhat.

He paid off 527's through the Democracy Alliance since 2004 and profitted from Halliburton only because he knew exactly when Media Matters would stop rallying against them. Mind you, this is a man who claims to hate Israel. He obviously creates political melodrama for his own financial gain. It seems like Soros is getting what he wants from the decline of our currency.

He has a friend named Jim Rogers who used to work with him at Quantum Funds. Jim Rogers endorsed Ron Paul during the 08 campaign. Ron Paul supporters have been shilling gold since the 08 campaigns, if not before.

One can say that BRIC intentionally pushed the US down. Soros has his filthy hands in Brazil and his Open Society Institute all over Russia and Eastern Europe.
But lest, one man couldn't do it all by himself.

A weaker dollar promotes exports, and the WTO hasn't been too great about enforcing trade war laws on China. Lets not forget to mention the illegal immigration and drug wars that send many billions of US Dollars out of circulation in our economy.

It's Papa's Feeding Time, but Pappa couldn't do with without the corruption in the previous two administrations and utter incompetancy and garbage that is our Congress.

We have to fix this. We have to vote out every crook in our government or have them forced out. This problem was created within.