Fed Money and Profiteering
It will be interesting to see who are the big beneficiaries of Credit
Default Swaps & derivitives (those who bet on US economic failure),
compared to the losers: pension funds, and banks (with tax funded TARP
bank prop money) etc. Seems like pension funds are the 2009 version of Gold confiscation, – conscripted into national service.
MY QUESTION –
So let’s get this straight. Could the Fed loan money to the US govt, in
order to bailout banks, whereby taxpayers pay interest + principal on
these loans, AND the banks then give bailout (CDS mortgage default
insurance debt, bad debt, etc) money to Fed bank related interests who won at the derivitive/financial insurance game??
Please tell me it isn’t so. [b]It would be like a Speculator losing all
their money plus some at the casino, the government bailing out the
speculators by going to the casino for a loan, so that the speculator
can pay off remaining gambling debts to the casino; whilst taxpayers
now owe the casino the principal and interest. And everyone else suffered a losing night of bad luck – no bailout for them, just
more taxes. Please tell me it isn’t so.[/b]
The Fed doesn’t have to tell us where the money goes.
SO A PART SOLUTION TO THIS CRISIS IS TO CANCEL ALL DERIVITIVES AND CDS TYPE INSTRUMENTS, even retrospectively if required; REFUNDING WHERE APPROPRIATE. As the following touches on (as posted elsewhere on site).
Short answer yes. The TARP money is a drop in the bucket to the CDS market estimated
at 50-80 trillion dollars. Obama will bail the banks and they will fail again when the next round of
CDS backed loans fail, ALT-A mortgages and GM for example. Its a black hole that will suck in gigantic
quantities of money. Unless someone can make all CDS contracts invlaid by law?
Ultimately the US taxpayer is being saddled with trillions of debt that will do no good, except making
the holders of CDS gigantically rich while the US economy goes over a cliff. Its called a Kleptocracy
for a reason. The bailout and stimulus will simply run up debt and interest, deepen the misery. Hoover
and FDR made the same mistakes.
Overall Wall St and Fed are executing a heist that will destroy the US rapidly. While people are
sleeping on the streets, these slime will be living it up in Dubai with a mountain of riches. All the while
the likes of Obama and Bush are taking the flack for the misdeeds of their puppet masters.