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Bernanke's Biggest Bailout

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posted on May, 5 2010 @ 05:51 AM
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Bernanke's Biggest Bailout


www.informationclearinghouse.info

May 03, 2010 "Information Clearing House" - -The right-wing think-tank, the American Enterprise Institute, is helping the Federal Reserve to develop a strategy to transfer $1.25 trillion in toxic mortgage-backed securities (MBS) and non performing loans onto the public's balance sheet.
(visit the link for the full news article)




posted on May, 5 2010 @ 05:51 AM
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Although it's unknown whether Fed chair Ben Bernanke will act on the AEI's recommendations, it does show that the Fed's Quantitative Easing program (QE)--which moved the bulk of garbage assets from the banks to the Fed's balance sheet--poses long-term problems that will need to be addressed. Bernanke never intended to keep these assets any longer than necessary. Now he is actively exploring options for getting rid of them.

Ostensibly, the QE program was designed as the first leg in a two-step process to remove the bad paper from the banks balance sheets and then dump it on Fannie Mae and Freddie Mac as discreetly as possible. So far, Bernanke has been relatively successful in convincing people that he was buying the assets to increase lending, which was clearly never the objective. Quantitative Easing was a fraud from the get-go. Here's an excerpt from the AEI's web page by the eerily-named "Shadow Financial Regulatory Committee" which explains what's going on:

"Freddie and Fannie have been placed in conservatorship and the Treasury has confirmed that their debt is now guaranteed by the U.S. Government. This means that their debt is essentially identical to Treasury debt. The Treasury could simply issue Treasury debt to Freddie and Fannie with the offsetting accounting transaction being an IOU to the U.S. Treasury. Freddie and Fannie could then swap the acquired Treasury debt for MBS held by the Federal Reserve.


This is so surreal that I almost cannot believe it, but apparently they are now trying to make the American people bear the full burden of this sub-prime mortgage crap, as if public debt is not high enough yet. It is unbelievable that banks make such a mess through miserable and greedy strategies and put the responsibility on the shoulders of the American people.

Meanwhile Obama continues spending until investors lose faith in the US ever being able to pay off its debts. Is this what they are after? It almost looks like it.

www.informationclearinghouse.info
(visit the link for the full news article)



posted on May, 5 2010 @ 06:24 AM
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ya see that is the down side to double entry accounting.
For every debit, you have to have a credit or else
the balance sheet does not balance.

This is proof that Bernake is trying to offload
that corresponding credit to the tax payer.
It's nothing but bank fraud and money laundering
on a massive scale.

Bernake AND Greenspan both
should be in prison.

Any local accountant who gets caught doing
this very same thing gets their license to practice
revoked and spends 5+ years in prison depending
on the size of the fraud.



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