September 18, 2008
Yo, commoner! Get ready to get stuck again, this time cleaning up the toxic housing-related bad debt that’s taking down the banks.
|S&L depositors in 1985: Crooks in high places told us it would only cost a mere $50 billion to bail-out the savings and loan mess. All told, it was closer to $1.4 trillion.|
Alan Greenspan, Paul Volcker, Barney Frank and others want to create something along the lines of the Resolution Trust Corp., a public boondoggle created during the fabled savings and loan “crisis” in the late 1980s. “Stocks would view the creation of some RTC-type solution positively because it would be viewed as something closer to a fundamental solution to the underlying problem that is afflicting financial markets now,” said Michael Moran, chief economist at Daiwa Securities American in New York, reports News for Yahoos.
Ah, yes, a “fundamental solution,” that is to say fleecing the commoners all the more. Last time around, crooks in high places told us it would only cost a mere $50 billion to bail-out the savings and loan mess. All told, it was closer to $1.4 trillion.
The S&L thing was all about “deregulation” — that is, allowing criminals and loan sharks to run things without oversight, sort of like allowing wolves to run a chicken coop — “imprudent” real estate lending, allowing insolvent savings and loan institutions to remain open for business, shady brokered deposits, risky lending, out-of-your-mind lending, the whole rotten ball of wax.
It was a great deal for the criminals, though, for instance the Bush crime family. Jeb Bush, George Bush Sr., and his son Neil Bush have all been implicated in the Savings and Loan scandal. Jeb Bush defaulted on a $4.56 million loan from Broward Federal Savings in Sunrise, Florida. Neil Bush, as director of Silverado Savings and Loan, allowed that institution to go belly up at a cost of $1.6 billion to taxpayers. Neil allowed all kinds of bad loans to shady characters. One “investor” (criminal), Bill Walters, defaulted on a $106 million dollar loan Neil dished out, apparently like breath mints – and why not, he probably knew you’d be on the hook for the balance.
Try defaulting on your mortgage like Jeb did and see what happens. Jeb was eventually rewarded by the idiotic voters of Florida and elected governor. Go figure.
Now the bankers and Congress are itching to resurrect the Resolution Trust Corp.
Tony Crescenzi of the Boston Globe explains how this scam will work:
Basically the U.S. will end up buying the toxic assets from the banking system in a more comprehensive way then we’ve ALREADY been doing. Staring down the worst financial crisis in decades, U.S. lawmakers are strongly considering whether they need to dust off a 1980s-era plan to help save the banking industry and stabilize the economy more broadly. Both Democrats and Republicans have shown interest over the past two days in the idea of creating a government corporation to help deal with the toxic assets that have already brought down financial behemoths Bear Stearns Cos. and Lehman Bros., and forced the government to take over Fannie Mae and Freddie Mac.
In other words, in order to “stabilize the economy” deliberately wrecked by the banksters, “lawmakers” — that is, high paid whores for bankers and transnational corporations — will agree to crank up the already staggering national debt with this scheme.
Recall Chris Dodd saying there would be no more government bailouts for other banks or institutions after $80 billion AIG bailout. Man, that Chris is a funny guy… he also takes you for an idiot.
But of course, there will be bailouts and sweetheart deals for the bankers into the indeterminable future. Because the average American can hardly count on his fingers and toes, let alone understand Basic Economics 101. He does not know a predatory financial Mafia is running the country and his “representative” is on the hook to the international bankers. He’s clueless, and that’s why he keeps voting for Tweedledee Democrat or Tweedledum Republican.
It’s really too bad, though. Thomas Jefferson was spot on when he wrote: “I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs.”
He also said that if we allow the bankers to run roughshod over the republic — er, excuse me, former republic — our “children will wake up homeless on the continent their fathers conquered.”
As for the latter, it is already coming true. “From Seattle to Athens, Ga., homeless advocacy groups and city agencies are reporting the most visible rise in homeless encampments in a generation,” reports MSNBC. “Nearly 61 percent of local and state homeless coalitions say they’ve experienced a rise in homelessness since the foreclosure crisis began in 2007, according to a report by the National Coalition for the Homeless. The group says the problem has worsened since the report’s release in April, with foreclosures mounting, gas and food prices rising and the job market tightening.”
It’s past time to storm the castle, that is to say the whorehouse in the district of criminals. Unfortunately, far too many Americans are clueless about what is happening to them and even if they had an inkling they’d be hard pressed to find the district on a map.