Tuesday, October 21, 2008

The October Surprise?

In "Bailouts and Bullets" I outlined a small piece of the very complex (and carefully crafted) puzzle that pushed the American taxpayers to their knees, landing them with the burden of bailing out humongous financial institutions even as they watched their own 401Ks disappearing before their eyes.

Yes, the CRA, particularly with the addition of the Clinton changes, was a major trigger... but in fact, the defaults in the sub prime mortgage arena were more like the kindling for a much bigger fire, something far more explosive - and evil IMHO.

I find it rather distasteful to see the media play up the sub prime mortgage side to the crisis with such a vengeance.

Lay off the mortgage defaulters for a minute.

Now, after you've taken your chill pill, how about reporting ALL THE FACTS... not just the little take-out window sound bites that you keep hammering on the little guy at the end of those sub-prime mortgages?

Let's take a walk back in history to the financial whiz kids era that brought about the biggest part of the mess, shall we?

Let's take a trip down CDS lane (Credit Default Swaps) starting with BISTRO.

The average taxpayer has no idea what BISTRO is, who dreamed it up, and how it became "all the rage" -- a working template for financial institutions throughout the world.

Before we begin this new journey... from what I understand, financial institutions couldn't securitize sub-prime before the revisions in the Community Reinvestment Act of 1995 (Clinton).

AND -- equally important -- a commenter on the article you are about to read had this to say in addition to the CRA related info:
The SEC had no authority to regulate Credit Default Swaps. Look up Brooksley Born. Greenspan, Robert Rubin and Lawrence Summers (Clinton's 70th and 71st Treasury Secretary) assured the agency which should have regulated them couldn't. The Commodities Futures Trading Commission, she was chair.

It started at J.P. Morgan. Then Credit Suisse caught on, building somewhat more toxic versions of it... and then, well -- I'll let you be the judge.

For those Americans who are still scratching their heads about this whole mess and wondering how a tiny percentage of mortgages out of the massive mortgage pie could have landed us all here, grab your favorite beverage and be prepared to read for the next 30 to 40 minutes...

Here is the most important (and best, IMHO) article you will ever read on the bailout subject -- The $58 Trillion Elephant in the Room

On another note...

I see Barney Frank and his buddies are gleefully rubbing their hands together wondering how much more money they should take from the taxpayers while we are all still reeling and somehow being made to feel guilty for the "so-called sub prime mess" that supposedly froze credit 'round the world.

NEWS FLASH to the House and Senate -- the American taxpayers are learning the truth. It would be wise if you put away that check book for now and wait to see how they plan to deal with the mess you allowed to happen on your watch.

For his part, McCain did try to reign things in on Fannie and Freddie. Obama must have later just been "present" as usual... I dunno.

Speaking of Obama...

Hey dude! Why don't you just fork over the necessary documents to prove your citizenship in the "Berg vs. Obama" case? It shouldn't take your legal team more than a few minutes to hand deliver it and get the whole citizenship thing cleared up. If you can afford to send such a HUGE fleet of investigators up to Alaska to do the smear job on Palin, seems like it would be a small feat for them to prove you are an American citizen.


You being a lawyer specializing in the Constitution, I would think this would be a very important little thing to clear up BEFORE the election, don't you?

And, ummmm, in case you're wondering ...no, I don't believe the factcheck.org site regarding this issue. You were in charge of doling out millions of dollars through the Annenberg Assoc, the very same association connected to factcheck.org. Nice try, though.

Just get your dang lawyers to high tail it on over to the courts with your documents. It's a very simple thing.

Unless... well, geez, I hate to even think it. Are you not an American citizen?

I won't tell everyone about the API tapes here. What your wife says to reporters isn't all that interesting to me. I never even watched her on "The View" or any of those other media spots.

But, I find it rather intriguing that your legal team should be fighting so hard to suppress the API tapes ... and fighting so hard to NOT supply the necessary documents proving your citizenship.

It's rather, odd... to say the least.

Meanwhile, a bit closer to home, did any of you happen to catch this article in Inside Indiana?

Way to go Jill Long!!! I applaud you for catching this and hope you will be successful protecting taxpayer interests here in Indiana. Thank you!

Fun With Words - Today's Word: FEAT
noun. notable deed; surprising trick.

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