The outrages insanity or ruthlessness of the Obama administration

Prof Taleb who developed the black swan theory was absolutely right about his attitude of the Geithner plan. The taxpayer takes the risk and Wallstreet the profits or as he calls it the losses are socialized and profits privatized. He absolutely rightfully claimed that he wants to keep the upside as well as he pays for the downside – that is simple common sense and anything else in the private world would be considered fraud. This Geithner plan is completely unacceptable and outrages by its core nature as it generates safe bets for a few firms and leaves taxpayers with all the risk. This is the biggest fraud in history and Madoff is petty cash compared to what is going on here on Federal level. Its a humongous con, scam organized by the Rothschild boys and sold to the people as a remedy for Mainstreet. The only crucial part is if the banks who need to sell those assets will play along but their hefty bailout aids are meant to keep the quite plus the perks they still keep getting. All this noise about bonuses has not brought any results they were still paid out except for some exceptions which needed to be done to distract the public.

In fact the G 20 meeting in London shows some very interesting aspects as Mr Change has to be pushed by Germany and France for market regulation which he resists so far as he seems to be a lobbyist of Wallstreet as many of the actions including the Geithner plan prove. President Obama and campaigning Obama are like Jekyll and Hyde two totally different animal. One may claim thats political routine but compared to the first Bush president who marked the famous words ‘read my lips no tax increase’ he seems to be.

The way the Obama administration deals with the Car industry compared with the Banking industry shows their attitude. Banks are supposed to be about lending but they all lost a century of profits within 2 years with their real business being an insane Hedge Fund. By bailing them out without any discrimination and putting an end to their undeserved greed shows who runs the government – the bankers who even killed at least to Presidents who were about to stop the FED or take their power away. America’s car industry management is not worth any single Dollar they earned as they watched the Japanese taking away market share for 3 centuries and not learning anything about it – just the fact that there cars were basically unsellable outside the US should have warned them about systematic misconcepts.


Geithner’s Non-Recourse Gift That Keeps on Giving to Bill Gross

April 2 (Bloomberg) — Treasury Secretary Timothy Geithner’s plan to rid banks and markets of devalued assets may be a boon for Pacific Investment Management Co.’s Bill Gross.

The plan may reward investors with 20 percent annual returns on “really toxic” mortgages bought at 45 cents on the dollar by allowing them to borrow six times their money with “non-recourse” government-backed debt, New York-based Credit Suisse Group AG analysts Carl Lantz and Dominic Konstam wrote in a March 27 report. That loan would be worth 15 cents to an investor seeking the same return who can’t use borrowed money.

Geithner’s Public-Private Investment Program, or PPIP, promises to boost prices enough to encourage banks, insurers and hedge funds to sell their mortgage holdings, freeing them to make loans while creating a potential windfall for investors. Federal Reserve Chairman Ben S. Bernanke said March 20 that “credit market dysfunction” is countering efforts to fix the economy.

“One of the challenges has been that leverage has really been pulled away from the system and as a result the kinds of returns investors are looking for haven’t really been available,” said Ken Hackel, head of fixed-income strategy at RBS Securities in Greenwich, Connecticut. RBS is one of the 16 primary dealers that are obligated to bid at the Treasury’s auctions of government debt and which trade with the Fed.


~ by behindthematrix on April 2, 2009.

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