Jim Rogers doesn't care for the current Economic Bailout, parts one and two

heck, the guy wears a purple bow tie and a pink shirt. That must count for somethin'....

Bloomberg via YouTube:

JPMorgan Responsible for the Destruction of U.S. Financial System

or so says this post at marketoracle.co.uk. Quite interesting. Here's the end of it, less the sales pitch for the author's newsletter:

Oct 16, 2008 - 05:19 PM

By: Jim_Willie_CB

HIDDEN USGOVT COUP BY WALL STREET

The US Congress has been subverted by intimidation and ignorance, maybe bribery. Regulators and law enforcement bodies are mere accomplices. The entire US banking system has undergone an unprecedented grand nationalize initiative, including the financial system, when considering the mortgage and insurance giants. The total bailouts are huge when put into perspective. This is a hidden coup, complete with deep fraud, corruption, and ruin for both prosecutors and whistle blowers. The US Dollar is caught in the middle of a black hole scrambled with fraud. Paulson is the new Chancellor of US Inc, Bernanke the new Currency Lithography Manager, and Sheila Bair the Investment Banker (a la Goldman Suchs). Paulson assumes all powers over the financial state from the president, via the banking industry control.

The government bailout redemption of $trillion past fraud closes the loop. Bernanke manages all efforts to use printed money for the purpose of buying worthless counterfeited and fraud-laced bonds, buying commercial bonds and posted collateral among businesses, as well as making printed paper products available to foreign central banks in relief of past fraud. Bair will act as the director of slaughterhouse traffic for JPMorgan, which needs a steady supply of bank deposits to offset their destroyed balance sheet from continued credit derivative implosion, thereby betraying the chartered FDIC pledge to protect bank depositors and senior bank bond holders through liquidation procedures, with full recognition of expedience. Hail to the king, long live the king! The US public seems so dumbstruck that it cannot demand even full disclosure of the process, let alone private offshore bank accounts for the new leaders of the successful coup.

The coup formalizes a climax to a Ponzi Scheme. A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, without any product or service bearing true value delivered. With the ongoing steadfast support offered by Alan Greenspan, they were able to maintain an incredible Ponzi scheme. They sold financial toxic waste products in the form of Mortgage Backed Securities (MBS), Collateralized Debt Obligations (CDO), Structured Investment Vehicles (SIV), Unidentified Financial Objects (UFO), and Credit Default Swaps (CDS). My favorite remains the UFOs. The corruption of politicians in Congress enabled the process, with relaxed guidance by the Financial Accounting Standards Board (FASB). The two key ingredients for the Ponzi Scheme are a mythological ideology and a high priest to endorse the game from a credible pulpit. Alan Greenspan claimed legitimacy of the US banking system, blessed credit growth and fractional bank practices as beneficial, and praised risk pricing systems using credit derivatives as sophisticated. The high priest used to be Greenspan, but now a tag team has replaced him. Hank Paulson is the spearhead for the great coup of the US financial system. Usage of short restrictions rules has been key to both instilling instability at necessary times, and raiding hedge funds. US Fed. Chairman Bernanke swaps USTBonds for any piece of bonded garbage known to mankind. Mammoth placements of leveraged trades by Wall Street firms make for some of the most grotesque insider trading in US history.

DECEIT & INTIMIDATION

The lies, deceit, backroom pressure, and fleecing of the American public is deep. Take the Emergency Economic Stability Act. Most of the initial $250 billion outlay was not devoted to American bankers, but rather to foreign bankers, primarily in Europe and England, and to purchase preferred US bank stocks. The US public was not told about this redirection, which constitutes misallocation, misappropriation, and fraud. Tremendous backroom pressure was exerted at every step. The underlying assets involved in swaps do not even have to be US-based mortgage bonds. The formerly submitted Paulson Manifesto was revived in a power grab, complete with considerable infighting and squabbles, since Morgan Stanley was given favor. The usage of funds to buy investment stakes in the giant US banks is yet another direct Fascist Business Model tactic, assisting banks close to the power center, yet reeking with corruption. The sickening irony is that they have no more money to disseminate and distribute. They cannot reveal their lies until they formally request more Congressional funds. Much discussion has come that the USGovt should adopt the Swedish model in the resolution of the current crisis. Not in a New York minute!! That would require heavy stock and bond losses, and more transparency of scum. Interestingly, the market discounts words as worthless, while bailout actions fail to produce even a positive reaction for a full day, until Monday last week when the Dow Jones Industrial index rose over 900 points. That was clearly Wall Street engineering a profitable short cover rally. Check S&P futures positions beforehand, if you can. The credibility of the US Fed. is close to being destroyed. On October 15, the same Dow Jones index fell over 700 points, almost 8%. Even the global rate cut was rejected by stock markets, a major insult.

Intimidation of the US Congress has been huge and powerful, similar to when the Patriot Act was passed in 2002. The Congress was actually threatened by martial law in the cities of the United States if the big bailout package was not passed two weeks ago! This was not reported on CNN or CNBC, but C-Span did cover it. The mobilization of the US Army for civilian control is well known in the past couple weeks. See the Third Brigade back from combat duty in Iraq. This account came from Rep Brad Sherman of California. To achieve supposed financial stability, the nation succumbed to totalitarianism by Wall Street thieves, conmen, fraud kings, and criminals. Instead, the bailout only covered up $trillion fraud. My position has been very stable and consistent, that such tactics are typical characteristics of the Fascist Business Model. The state merges with the large corporations, who proceed to terrorize the citizenry after unspeakable protected corruption and theft. To object is to be labeled unpatriotic!

TOP DOWN SOLUTION FAVORS THE ELITE

The top-down approach used to date aids the wealthy bankers, while the homeowners are denied aid. That aid is promised but rarely arrives. The fundamental problem here is that billion$ are devoted to shore up insolvent banks, to redeem their worthless (or nearly worthless) bonds, and to give a giant pass to the executives. Trust has eroded throughout the system. Banks distrust each other's collateral. The result is that eventually the US Economy will enter not a recession, not a depression, but a DISINTEGRATION PHASE. Despite Bernanke's studious efforts, borrowing from revisionist history, his liquidity is nothing more than bailouts at the top for the perpetrators of the housing bubble and mortgage debacle. The bank system benefits little inside the US walls of finance. A bottom-up approach might have had a chance to succeed, but a top-down approach is a sham. To expect a top-down solution that actually relieves the housing inventory logjam is insane. That is like feeding a teenager with meals placed inside the human rectum, expecting nutrients to find their way to the rest of the body! The credit mechanisms do not travel upward within the pyramid, but rather in the downward direction, starting with a borrower, a good collateralized risk, and an underwritten loan, when plenty of lending capital is available. The US public has bought this stupid ‘Trickle Down' philosophy for years, learning nothing. The US Economy is on the verge of collapsing. Short-term credit is being denied at key supplier intermediary steps, soon to result in recognized disintegration.

The primary practical objective of this corrupt trio (JPM, GSax, FDIC) is to avoid Credit Default Swap fires, which would bring an end to their reign of terror. This US Economic failure is in progress and is unstoppable. The 1930 Depression resulted after monumental credit abuse from the bottom up, as hundreds of thousands of people leveraged investments 10:1 with stocks primarily. The 2000 Depression will come after monumental credit abuse from the top down, as hundreds of big financial firms leveraged investments by 7:1 and 20:1 with bonds primarily. The most absurd of all is the CDO-squared, leveraging upon leverage. Total seizures have crippled the banking system. Short-term credit has largely vanished, as letters of credit are routinely not honoured at ports in the United States. The panic will continue, especially when supplies dry up.

GOLD & SILVER AWAIT THEIR EXALTED STATUS

We are witnessing the disintegration cited in my recent forecasts. It is a systemic failure, marred by lost confidence and trust in the entire financial system. Expect foreigners soon to pull the rug from under the American syndicates in control. Several key meetings have already concluded, totally unreported in the US press, which occurred in Berlin Germany. Consider it the Anti-G7 Meeting. Implications are profound, and involved the Shanghai Coop Org tangentially, since its member nations possess so much new commodity supply. Consider it the Anti-NATO group. An important and powerful alternative financial system is soon to spring into action, including high-level bilateral barter. Those who expect the current US Regime to continue their financial terror are in for a big surprise.

Expect defaults in the COMEX with gold & silver, whose prices for paper vastly diverge from physical, to the anger of foreigners watching. They hold massive precious metals assets. Disparities now contribute to powerful forces, sure to break the current system. Grand systemic changes come. THE RESULT WILL BE A BREATH-TAKING DISCONTINUITY EVENT.

Ironically, the more inner anguish felt on the falling gold & silver prices, the closer we are to a new financial framework, with the US Dollar relegated to a Third World role. A REPLACEMENT GLOBAL RESERVE CURRENCY HAS ALREADY BEEN DECIDED UPON. Its launch awaits the proper moment. The Americans are last to know, as usual. The US leaders are under the illusion of being in control!

An alternate take on the Bailout

...well, it's different...!

Pablo Ouziel in Online Journal:

If private institutions are requiring money from the taxpayer because their mismanagement is putting the whole economy under risk of collapse, then the bailout should be reframed and converted into the $700 billion bail. The taxpayer should demand that every CEO who requires money from the government be locked up and only released on a bail of $700 billion dollars. Otherwise it is just a blatant joke and an insult to the elementary functioning of a democratic society.

People are being urged by their government to approve legislation, which will ultimately allow the same people who created the mess, to have a blank check to play with the future of the American people. The same people, who until only a few weeks ago were certain that the fundamentals of the economy were solid, are now rushing to ask for funds. They either lied or they had no clue about what was happening. Either way, it would be wise to remove them from their posts before any decisions are made. Maybe Nouriel Rubini should be called up to become chairman of the Fed or treasury secretary, after all he has been one of the few voices making correct calls on events as they have unfolded. Surely, the American people deserve someone with a successful track record, making the calls on the future of their very fragile economy.

There seems to be in this society a rejection of simplicity. If it isn’t fancy enough, we want complicated mechanisms and complicated people telling us how things should be done. To a certain extent, I can understand how that can impress the simplest of minds, but at some point, when the complicated mechanisms and the complicated people have proved to be wrong, they must be removed from positions in which they can cause greater harm. Yet, simplicity always finds a hard sell when it comes to telling people what would seem like coherent first steps.

Here are a few steps which would convert the taxpayer bailout into bail for the prison sentence of irresponsible CEOs. This will at the very least guarantee the safety of the American people, and the restoration of their tarnished democratic ideal. Yes, I am in agreement with policy makers and financial analysts about the fact that legislation has to be approved fast, in order to avoid the complete meltdown of the economic system. However, if those responsible truly agree with this view, they should patriotically accept the demands of the taxpayer. The demands of the taxpayer, as manifestations against the bailout, should state the following preconditions to any agreement:

1. Impeachment of George W. Bush for lying about the fundamentals of the economy.
   
   
2. Ben Bernanke’s immediate removal from his post as chairman of the Board of Governors of the United States Federal Reserve for lying about the fundamentals of the economy.
   
   
3. Henry Paulson’s immediate removal from his post as the United States Treasury Secretary and member of the International Monetary Fund Board of Governors for lying about the fundamentals of the economy.
   
   
4. Immediate arrest of the CEO and CFO of any organization asking for funds from the taxpayer. Bail should be set at $700 billion. Once the markets have stabilized, trials can proceed to determine the guilt or innocence of individuals.
   
   
5. Immediate return of bonuses by management teams in distressed institutions asking for taxpayer funds.
   
   
6. Immediate cancellation of the mortgages of American families owning only one home.

These preconditions might sound harsh, but we are talking about a rushed document, which is the biggest bailout in the history of the world. The last rushed decision of this magnitude created the mess in Iraq. Hopefully, this time around the U.S. taxpayer, after having experienced the harsh consequences of rushed decisions, will be smarter. The difference this time around, is that instead of shooting Iraqis, the Americans are about to shoot themselves in the foot. I do feel for the majority of the American people, who frankly have no clue about what is happening to their cherished country, but apart from writing to them, there is nothing much one can do.

The blatant lies of their elites continue to destory the little crumbs that are still left of what was once the “Great American Dream” and has now become the “Great American Nightmare.” Faced with this scenario, setting bail at $700 billion seems completely reasonable to me.

Pablo Ouziel is a sociologist and freelance write based in Spain.

Elaine Supkis's Tour of the Washington D.C."Bailout" Hearings

We all hear about the goings-on in D.C. But what really goes on there?

For instance, we hear about Paulson and Bernanke meeting with Congress, pleading for their $700 villion+ bailout. What was that really like?

Wouldn't it be nice to hear about it from someone who actually understands more about it than most of the participants? Someone who could explain the arcane financial travails, tracing their roots back into history?

Having endured the "debate" tonight and exhausted my critical facilities, I stumbled upon such a resource, right here in the tubes of the internets. This lady, whose web writing appeared on my screen for the first time just a few weeks ago, undertook the trip to D.C. and wrote it all down, and posted it, complete with photos and illustrations, for our viewing pleasure.

What are her credentials? Who knows? I honestly know only a few snippets of her varied and extraordinary background from what I've read at her website. But her D.C. story (which must have been written and posted in great haste) has a clarity and insight (and humor) that I've rarely encountered. She explains things in the metaphor of mythology, which I find delightful, but might turn you off. I find it helpful in grasping the complexities of the situation.

Here is her trip in four lengthy installments:

the Pre-Bernanke Hearings in DC

The Sphinx And The Hijinks

Bush gives he Democrats the Monkey's Paw

OTC Derivatives Monster Mess Gets Worse

I can only hope you find them as useful as I did.

Financial Elite Terrorism—Bushco at work

This is mind boggling in it's implications. Let's dissect this a bit...

White House Dispatches Team to Push Economic Bill

September 23, 2008, 10:42 a.m.
By Keith Koffler
Roll Call Staff

---

The White House today is drumming up extraordinary pressure on Congress to approve its plan to enact a $700 billion mortgage bailout fund, suggesting the markets cannot wait much longer and dispatching Vice President Cheney and other top officials up Pennsylvania Avenue to jawbone lawmakers.

Cheney, White House Chief of Staff Josh Bolten and presidential adviser Ed Gillespie are meeting this morning with House Republican conservatives, where a rebellion is brewing against the size and questionable free market credentials of the administration proposal.

Yes, that's right— the opposition is coming from House Republican Conservatives. For a quick education, look up Ed Gillespie in Wikipedia: "When Karl Rove also departed in August, the Washington Post described Gillespie as stepping up to do part of Karl Rove's job in the White House" "He also played an aggressive role as spokesman for the Bush campaign during the vote recount in Florida."

Cheney will later gather with GOP Senators at the regular Tuesday lunch. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke, who collaborated in drawing up the proposal, are testifying this morning on Capitol Hill in an effort to defend their handiwork.

But Bush himself continues to do little to explain his plan, and he has refused to be questioned about it.

How much you want to bet he doesn't have a clue what they're doing.

Asked during a telephone briefing for reporters today whether Bush was speaking with lawmakers, White House Deputy Press Secretary Tony Fratto said the president is aware of their concerns but that Paulson is the salesman.

At least, that's what they told Bush.

Paulson said Congress and the administration must move rapidly.

Before anyone actually has a chance to read the thing. Hey, it worked with the Patriot Act...

“We must do so in order to avoid a continuing series of financial institution failures and frozen credit markets that threaten American families' financial well-being, the viability of businesses both small and large, and the very health of our economy,” Paulson said in remarks as prepared for delivery. “The market turmoil we are experiencing today poses great risk to U.S. taxpayers.”

Fratto said it would be “unthinkable” for Congress not to pass legislation this week, asserting the result would be a “very, very serious situation” for the U.S. economy.

“It shouldn’t take much analysis to remember what happened last week, which was a very serious freeze-up in our credit markets,” Fratto said. “Our financial markets right now do not need uncertainty, they need increased certainty as to how this rescue plan is going to go forward — and that they can be sure that there is a plan to go forward — and that will begin the correction in our financial markets.”

Fratto insisted that the plan was not slapped together and had been drawn up as a contingency over previous months and weeks by administration officials. He acknowledged lawmakers were getting only days to peruse it, but he said this should be enough.

And here's the clue. They've been working this thing up for months, waiting for things to get so desparate, so critical, that they could spring it on Congress and then force it through before anyone could take a breath.

If it was so serious, why didn't they discuss it with, oh, maybe the Congressional Republican Leaders? I know, it would be asking too much to expect them to discuss it with the folks who supposedly actually run Congress, the Democrats...

This time they're even trying to scam their own Republicans.

Amid growing criticism of the initiative from multiple quarters, Fratto sought to defend its key principles and argue against changes.

He argued that the proposal is being unfairly characterized as a boon to Wall Street at the expense of Main Street, since credit market difficulties also squeeze average consumers. He minimized the need to help homeowners as part of the package — a key demand of Democrats — saying aiding the credit markets will help on its own and noting that Congress just approved a housing bill that includes assistance.

And Fratto sought to beat back efforts to limit the pay of CEOs whose companies would draw assistance under the legislation, saying it would make it difficult for the plan to work “If you provide disincentives for companies and firms out there that are holding mortgage-backed securities and other securities from participating in the program.”

What part of "rule of law" do they not understand? Apparently, any of it. "Making stupid, economy-threatening scams illegal might make crooks oppose it." Do tell.

Fratto noted that some firms holding troubled securities are otherwise successful. “They were not necessarily irresponsible players, and so you have to be careful how you deal with them,” he said.

Yes, and the Mafia built schools and orphanages...Hitler was kind to children... it is a complex world.

Some protesters and newsreporters exercise their constitutional rights and are beaten and jailed without mercy. No one is too concerned about being careful how they're dealt with...