posted on Sep, 29 2008 @ 05:38 PM
A few points in response to the growing volume from the minority who are responding to the markets with fear and claiming a bail out is needed:
1. The performance of the markets is not tied to human reactions to events as closely as you might think. Automated trading systems, especially those
run by the plunge protection team respond in ways which will bring key stocks back up in contradiction to a down turn. There are human traders who are
aware of the scripted trades and will purposely modify their actions to take advantage of the PPT system for profit.
2. This IS NOT about individual home owner's mortgages and the credit card society. The hard assets in the form of properties and so on do not
vanish, the banks still hold the deeds. The descent in property values vs. the true capital exposure held on the bank's accounts is not a significant
amount compared to the exposure they have due to the "illegal" packaging of those loans into derivative securities. It's not the home loan, it's
the millions of pretend dollars built on top of each of those home loans.
3. Think about it, a 100k property was converted into a 3 million dollar security instrument which in turn was converted into 30 million in hedge
vehicles. This is why the push was made to remove the regulations which prevented this type of game - the SEC and the FED basically allowed the banks
to create 29.9 million of debt with a hard asset value of only 100k. This was a huge ponzi scheme, a pyramid scheme where the people who created and
sold these helium balloon investment vehicles profited and left the last hands holding these things to burn. Guess who those last hands belong to?
China and other countries who purchased them and also purchase the majority of our treasury bonds. When they get burned on these BS mortgage based
securities they sure as hell aren't going to be holding or buying treasury bonds.
4. If the real problem was with foreclosures then the solution would be to buy up all the bad mortgages and put the base back under the pyramid. The
real world cost of doing that has been estimated at around 50 to 100 million. Obviously that's not what the plan is because that's not where the
real problem lies. The real problem is that ego and greed combined with a blind eye from the DC powers allowed the investment banks to go completely
insane, repackaging and re selling these same hollow derivative vehicles over and over again until the eventual collapse of these funds was
That's why they need hundreds of billions, actually quadrillions of dollars for this "bail out". They want to buy back these funds so the rest of
the World doesn't drop wall street and the US economy like a 5 dollar crack whore. They need to sweep it all under a big rug and god forbid the facts
and real figures come out. Not only would wall street generate thousands of new federal prisoners but most of the politicians, appointees and so on
would also burn. They intend to rape the public to cover their own asses, period.
There are other solutions, better ones - but they don't include a mechanism to hide the evidence. Mark my words. If these criminals get their way we
will all suffer for it and the next rounds of "financial 911's" will make this one look like a minor market hiccup. There is not enough real money
in the entire world to buy our way out of this one. Americans need to realize this for what it really is and begin dealing with reality, making the
tough decisions and taking the hard but correct course to fix it. I don't see that happening. Another few days of market drops and bank crashes and
they'll be calling DC to beg for the quick and easy fix. (And pay for it with our society)