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The Savings and Loans Collapse 2.0

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posted on Jan, 28 2008 @ 01:03 PM
Check out this article its implications are very BIG to peoples future savings :

Two possible scenarios can easily and most likely will occur in Scenario A. Joe Taxpayer (you and I ) get screwed in Scenario B. Joe TaxPayer (you and I) get screwed again..

When the Savings and Loan collapse occured what actually happened is about 700 banks went bankrupt because of the laws determining interest rates - as a result in order to cover the closed banks the FSLIC department simply covered the losses of the deposits and then added the charge to the federal deficit! - It means in order to cover the money on deposit they simply raised taxes / lowered services and increased their federal debt. So in the end the end user payed... and then the FSLIC went OOPS! WERE BANKRUPT - and rolled themselves into the FDIC that all the banks crow about are sure to protect you - NOT! - This is a possible scenario when banks start to fail when faced with financially crippling lawsuits when the court lawsuits are filed...

Check it out for yourself here :

But here is the situation - they have peddled trillions in sh*t loans on ARM mortgages - which are basically like a balloon loan you would get off a unethical car loan like the ones were you don't pay for 6 months / get a free trip to Hawaii!! and all that garbage... However instead of giving them their correct rating (C or lower) they mis-labelled them deliberately as AAA+ loans and then fooled international investors to buy trillions of dollars in them... Nice hey - but the problem is under US contract law if their was deliberate misrepresentation or false dealing in the loan the contract is VOID and must be repurchased at face value - the value of these bad bonds is 10x the value of all the US banks put together. So somebody has to eat it and I will show you in both cases it will be Joe Taxpayer...

So in scenario A they loose in court and then are faced with huge penalties and a pile of US banks go Chapter 11 bankrupt - then the internationals demand the deposits of the depositers in lue of the bad bonds - tying up depositor assets into a legal limbo for years while they fight and squabble over it... So the depositor either looses his deposits or FDIC steps in and issues the currency to cover the loss - which they then roll into the federal debt all over again... Just like they did in the Savings and Loans Collapse - So Joe tax Payer gets it one way or the other...

But in Scenario B is just as bad because the Government can foot drag itself and that is exactly what it is doing by legislating this latest Good Hope Program it is a deliberate legal hurdle meant to keep Bernankes friends from real jail time... But it doesn't work either because if the the United States decides to break contract law - then the international community will come in and dump US dollars crashing their economy... and will also cease trading with the US - So Joe Tax Payer gets it in the end again.. Because productivity in the US is so LOW and nothing is made here the dollar would devalue immediately against the lack of products and the huge amount of currency... So the dollar becomes worthless either way!

I figure this will be unraveling all year - Remember NONE of the banks will tell you they are awaiting their insolvency or that they mis-sold ARM bonds and are about to get sued -


posted on Jan, 28 2008 @ 07:50 PM
Oh,I remember that and Vice-president George HW Bush made sure Neil and Marvin did not do any real jail time.Seems to be a patern with the Bushes.


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