reply to post by seabisquit
your correct... the $4Trillion has been to unfreeze the banks & lending institutions Credit Creation Machinery... instead of the actual culprit which
is the 'Mortgages' themselves.
a mere pittance...$200Bn has beenthrown at Fannie/Freddie,
and trying to lure mortgage paper into that relief system... where the loan could be refinanced, re-assessed, restructured. etc
but that's not what's being addressed by the Fed/Treasury,
they are busy being preoccupied with the 20 or so 'primary dealer' banks...
now reduced to 9 banks worthy of consolidation under the Fed/Treasury 'central bank' system....
what the Fed/Treasury has to do to 'save' some sembelance of a 'system' is to acknowledge that all those ponzi-paper 'bets', disguised as legal
bonds & MortgageRelatedSecurities...and accept the Issurers 'Price' on all these +100s of Trillion$ of CDS, CDOs, etc etc.
When, in actuality, none of these inter-bank insurance bets are/were
recognized, regulated, and redeemable, legal debt paper...
all these debt swaps and credit swaps... were most like 'poker chips' at a members only poker game... with each bank raising and counter-raising one
another... & using the potential winning 'pot' as the collateral to get more poker chips from the house...to keep the pot growing (its something
like $523Trillion large, est)
the Fed/Treasury, is still convincing the public that there is a legal debt out there which needs to be paid...~wrong~
I ask, when does the creation of bogus, debt paper, which has no backing or collateral from the issuing party become an asset? Only when some party
recognizes that the debt paper is credible and worthwhile...as the Fed/Treasury is currently doing.
I suggest that credit swaps, debt/interest swaps, counter-party bets, are all worthless intra bank 'tokins'...only duly recorded. legal mortgages on
actual physical property, are tangible assets that can be transferred and negotiable...
the multi-Trillion hedging with surreal debt instruments, by the movers-shakers in the finance industry, are in reality...their equivelent to poker
They had their fun amongst themselves.. they all should go back home, with their own losses.
Ripping off the taxpaying public is a criminal act...
but only trying to... is a mere 'conspiracy'