Global Commie Government Global Commie Wall Street Interactions Hurt The Taxpayer ;

Freddie and Fannie
certainly had a large role
to play in the housing crisis
and many may claim that they
were the main contributors of
the housing crisis which eventually
resulted in a market meltdown.

Before we proceed
let's get some background info
on these two chaps.

They were created by
the Federal National Mortgage
Association in the 1930's to help
speed up the home ownership process
by buying mortgagees from banks.

Banks would normally sell
a mortgage and then put it
on their books, this means
that each time they did so,
a certain amount of capital
was tied up and this limited
the number of mortgages
they could issue.

Now they could simply issue
a mortgage and sell it to Freddie
or Fannie and as a result banks
could issue almost as many
mortgages as they could sell.

Although they are private
companies, they are government
sponsored enterprises established
by federal law.

As GSE's they received
special privileges, the main one
being that if they were threatened
with failure, the federal government
would come to their rescue.

This gave them the best
of both worlds; profits are
privatised but losses are socialized.

This guarantee basically
encourages immoral and
unconscionable behaviour
because there is no downside ;
the downside becomes the
government's problem,
which in turn becomes
the tax payer's problem
http://www.kitco.com/ind/palha/apr162010.html

The One Market
the Fed Hopes
You Won't Find Out About :

Year 3
of the Great Financial Crisis ;

I'm still astounded
at the complete and
utter lack of coverage
the underlying cause
of this Crisis has received.

Remember back in 2007?
At that time we were told it
was all about Subprime
mortgages.

Then in 2008,
we were told it was the investment
banks, specifically Lehman Brothers'
failure and AIG's credit default swaps.

In 2009, we were told
it was poor accounting standards
and bad bets made by Wall Street.

And here we are in 2010,
and we're still being told
it was simply bad bets
made by Wall Street.

All of these answers
are partially right, but none
of them are totally 100%
accurate.

Because they fail
to address the one
underlying issue that links
ALL of these items.

I'm talking about
the Black Hole of Finance :
a bottomless pit that no official
or regulator bothers mentioning
in public because acknowledging
it would mean acknowledging
that all of the efforts to stop
the Crisis are truly paltry.

What caused the Crisis?

Derivatives
http://www.kitco.com/ind/Summers/apr142010.html

Most of the big US Banks
are engaging in the same kind
of repo accounting at the end
of the quarter that Lehman
Brothers was doing to hide
their financial instability until
deteriorating credit conditions
and liquidity problems made
them precipitously collapse,
as all ponzi schemes and
financial frauds do when
the truth becomes known.

The basic exercise
is to hold big leverage
and dodgy debt, but swap it
off your books with the
Commie Fed at the end
of each quarter for a short
period of time when you have
to report your holdings.

This could easily be corrected
by requiring banks to report
four week averages of their
holdings for example, rather
than a snapshot when they
can hide their true risk profiles
so easily, compliments of that
'protector' of consumers and
investors, the Commie Fed.

Most Wall Street Banks
Using Lehman Style Accounting
Trickery Enabled by the Commie
Fed to Hide Their Risk
http://jessescrossroadscafe.blogspot.com/2010/04/most-wall-street-banks-using-lehaman.html

If any single person
is most responsible for
the financial crisis, it's
Alan Greenspan.

He presided over a Fed
that lowered interest rates
to zero (adjusted for inflation)
but failed to prevent banks from
using essentially free money to
speculate wildly.

You do not have to be
a brain surgeon to understand
that if money is free, banks will
take it and lend it out.

And if oversight is inadequate,
the banks will lend the money to
anyone who can stand up straight
and to many who cannot.

The result will be
a giant subprime lending
bubble that will burst.

If any three people
are most responsible
for the failure of financial
regulation, they are Greenspan,
Larry Summers, and my former
colleague, Bob Rubin.

In 1999 they advised
Congress to repeal the
Glass-Steagall Act, which
since 1933 had separated
commercial from investment
banking.

By 1999,
Wall Street was salivating
over such a repeal because
it wanted to create financial
supermarkets that could use
commercial deposits to place
bets in the financial casino.

That would yield the Street trillions.

Greenspan, Summers,
and Why the Economy
Is So Out of Whack
http://jessescrossroadscafe.blogspot.com/2010/04/reich-levels-broadside-at-greenspan.html

Commie Shariah Finance
http://www.stopshariahnow.org/index.php?option=com_content&view=section&layout=blog&id=15&Itemid=62

More Evidence That
The Global Commie Criminal
And Fraudulent Climate Change
Aganda Is Linked To Commie
Chemtrails, Commie Geoengineering
& Commie Weather Modification :

Courtesy Of The U.S. Taxpayer
http://www.wiseupjournal.com/?p=1441

Defy Defeat Expose Oppose Protest & Resist :

The Anti Constitutional Anti Republic
Anti Capitalistic Unconstitutional Treasonous
Criminal Satanic Commie Hell Care Whores
& Satanic Globalist Commie Liberal Progressive
Stateist Unionist Ponzi Schemes, Lies, Liars
& Frauds