No Treason

Monday’s updates on the Great Fascist Bailout Package designed by criminal technocrats, Ben Bernanke and Henry Paulson.

A fantastic analysis,

This is clever and nobody in the mainstream media has figured it out.

If you think the cost of this bill is $700 billion, you’re wrong. The cost is actually infinite and the entire bill constitutes a giant money-laundering scheme.

Paulson can (and presumably will) buy up to $700 billion of these “assets”, then sell them. Let’s say he decides to buy them at 60 cents on the dollar and sell them for 10. You, the taxpayer, will eat the fifty cents, for an immediate cost of $350 billion dollars.

Having done so, he is then authorized to do so again, since the $700 billion is no longer on the government’s balance sheet.

In fact, he can do this without limit, other than possibly due to the federal debt ceiling, which of course Congress will raise any time we get close to it. Oh yeah, this bill does that right up front too. No need to bother with it the first time around.

Folks, $700 billion isn’t even close to the total cost of this monster.

If Paulson and his successor decide to, they could literally cycle all $5.3 trillion of Fannie and Freddie’s debt through this scheme, potentially sticking the taxpayer for 20% or more of the total, plus as much private debt on various bank balance sheets as they can manage to nationalize until (and possibly beyond) the point where the bond market tells him to go to hell.

Bottom line: This bill gives Paulson the ability to nationalize an UNLIMITED amount of private debt and force YOU AND YOUR CHILDREN to pay for it.

How Much Will the Bailout Cost You?

Assuming 150M taxpayers in the U.S., that works out to about $5,000 per person. That’s the right now cost. If it had to be paid for right now, it couldn’t be done. Unfortunately, the government isn’t going to pay for it right now, they’re going to finance it, putting up your productivity and acquiescence as collateral.

Those $5,000 will be compounded by invisible inflation that will mysteriously be “adjusted” away in the officially reported core inflation Index du jour, and a crushing tax burden sure to follow.

And hardly anyone has noticed, that the investment firms, have now become banks.

Goldman, Morgan Scrap Wall Street Model
Become Banks in Bid to Ride Out Crisis End of Traditional Investment Banking, as Storied Firms Face Closer Supervision and Stringent New Capital Requirements

The Federal Reserve, in an attempt to prevent the crisis on Wall Street from infecting its two premier institutions, took the extraordinary measure on Sunday night of agreeing to convert investment banks Morgan Stanley and Goldman Sachs Group Inc. into traditional bank holding companies.

With the move, Wall Street as it has long been known — a coterie of independent brokerage firms that buy and sell securities, advise clients and are less regulated than old-fashioned banks — will cease to exist. Wall Street’s two most prestigious institutions will come under the close supervision of national bank regulators, subjecting them to new capital requirements, additional oversight, and far less profitability than they have historically enjoyed.

Already, the biggest rivals of Goldman Sachs and Morgan Stanley — Merrill Lynch & Co., Lehman Brothers and Bear Stearns Cos. — have merged into larger banks or sought bankruptcy protection.

“This fundamentally alters the landscape,” a Goldman Sachs spokesman said Sunday night. “By becoming a bank holding company and being regulated by the Federal Reserve, we have directly addressed issues that have become of mounting concern to market participants in recent weeks.”

I wonder what the fallout in Canada will be like. So far, it is all quiet on the northern front. Although I did find this interesting perspective.

Domestic banks may join bailout list

Charles Geisst, professor of finance at Manhattan College, said in an interview yesterday that he thinks foreign governments have good reason to resist stepping up to the plate.

“It’s an American problem,” he said of the financial crisis. U.S. subprime mortgages wound up in a number of complicated financial instruments that banks around the globe were holding. “The U.K. was the closest to it, simply because of the interbank connection,” Mr. Geisst said. But “the German banks who bought these mortgage-backed securities just as investments have got to be wondering what the hell they were sold, as would the Chinese and folks in Singapore. And I think they’re right.”

As usual, FSK is following the money,

Anybody who knew about this bailout ahead of time could have profited immensely. They could have bought the shaky subprime mortgage bonds before the bailout was announced. Now, they can sell those bonds back to the Federal government for a nice profit. As usual, politically connected insiders profit at the expense of everyone else. Only politically connected insiders may do this, because they need to make sure the bonds they bought qualify for the bailout.

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