Bailout Crimes and our Approaching Poverty

(10 am. – promoted by ek hornbeck)

An associate of mine still believes that his stocks portfolio is safe (it will come back) even as he witnesses his business failing due to the credit freeze…but that is so American “it can’t happen here, it can’t happen to me,”… even though it is and right in front of our eyes.

And that is perhaps the most amazing trick as well as the biggest crime: making people believe that something works to their advantage, while in reality it drives them into debt-riddled poverty. People have this remarkable talent to fool themselves, to see only what they wish to see, and it can be a gift from heaven. But that’s not always a given.


The words above come from a fantastic blogger named ilargi at the The Automatic Earth blogspot.  I have been reading his blog for months now.  If you are concerned about our economy and want a truthful analysis of what is happening I suggest you go read.

I am scared and you should be too.  

However, worse than the effect this will have on our retirement funds is the effect it will have on the innocent.

But when it comes to food and water (and shelter) being bought and sold by large anonymous investors, there must inevitably come a time when a profit can be made through people’s misery.

If there is more money to be made in selling sending our food and our water to other communities than our own, we will be either poorer, hungry, thirsty, or all of the above. Equally, if we allow people outside our communities to buy, sell, lend out and manipulate our homes for profit, we will end up either poorer or without shelter, and again most likely both


The only way to stop this crime and pillaging and save what is left of our economy is best spelled out by Denninger:

If so, here are the acts you must undertake as soon as you are sworn in, and you should announce them tomorrow so the market will stop tanking due to the lies of Mr. Paulson and Bernanke:

1.  You will send up a bill that enacts a full repeal Gramm-Leach-Bliley.  This was the law that repealed the Glass-Steagall act (the majority of it, anyway.)

2.  You will send up a bill that reinstates the leverage limit of 12:1 that used to apply to investment banks (the dropping of which is the proximate cause of this mess, and which Henry Paulson was directly responsible for through his lobbying and requests) and apply it to all institutions doing business in The United States.

3.  You will send up a bill that repeals the 2005 “Bankruptcy Abuse Prevention” act – an act you voted no on originally.  This one should be a no-brainer, since you didn’t support it originally.

4.  You will send up a bill that repeals the TARP/EESA, and will vow to do everything in your power to stop the expenditure of any further funds under the existing law, and you will direct Treasury on January 20th to reverse the tax changes that granted $150 billion in “preferences” without a vote of Congress or even public notice.

5.  You will send up a bill that requires the SEC, OTS, and OCC to compel all assets and liabilities to be consolidated upon a firm’s balance sheet and directs that all marking methods, formulas and variables along with each asset held be disclosed accurately for every firm that operates in the United States.

6.  You will direct The Federal Reserve by executive order to comply with the FOIA filed by Bloomberg and disclose, immediately and forever into the future, all loans issued, to whom, the specifics of the collateral pledged, and the discount or “haircut” applied.  Such information will be published via The Web at the point of issuance of Fed Credit and all actions taken by The Federal Reserve or any of its district banks shall be undertaken in the full sunshine of the public view.  If The Fed should refuse, you will pledge to send up to Congress a bill to repeal The Federal Reserve Act of 1913, and replace The Federal Reserve system entirely with an entity that will under penalty of federal law operate 100% “in the sunshine.”

If you want to stabilize our markets and financial system, you must undertake all six of the above acts, and you should announce your intention to do so now, so that the markets can anticipate that the “dark ages” of obfuscation, lying and theft will stop on January 20th.

You should, today, call upon Henry Paulson to resign immediately, as his actions in 2004 were the proximate cause of this mess, he is hopelessly tied up in conflicts of interest that have been expressed in ridiculous favoritism over the last year and a half, and in addition he has refused to admit his complicity.

We are literally on the precipice of a full-on meltdown despite what the talking heads are saying.  Henry Paulson and Ben Bernanke came to you and the rest of Congress about a month ago and said they would “fix it” by buying up illiquid assets.  

They lied; not only did they not do so, I allege they never intended to do so, and worse, they knew up front that their “prescription” would not and cannot work, because there is simply not enough money and credit available to solve the problem.

The Main Street economy will not and cannot recover until the excessive debt is forced into the open and defaulted.…

But it is truly up to us Kossacks, up to all Americans to make this happen.  We must demand the above action from our Congress and President elect now.

Crossposted to DailyKos…

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    • RiaD on November 15, 2008 at 1:32 am

    thanks ever so much!

  1. Only I would modify #6 and dissolve the Federal Reserve. The Constitution grants to Congress the authority to print money. The Fed is a private bank, the Treasury Dept. should be, as per the Constitution, directly responsible for capital.

    Thanks Rachel for sharing this Friday provocation!

  2. Especially for Karl Denninger’s clearly spelled out program of common-sense steps that must be taken by anyone serious about restoring sanity, let alone order, to the American economy.

  3. Paulsen caused the mess, and he, very handily, had the solution?  Double fishy.  He should resign, and then he should face charges.

    Couldn’t we put Paulsen and the rest of the crooks in Gitmo?  I hear it might be available soon.

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