Comments on: The US Sub Prime Crisis: Review, Prospect and Retrospect-Rajendra Rampersaud http://www.stabroeknews.com/2008/business/08/08/the-us-sub-prime-crisis-review-prospect-and-retrospect-rajendra-rampersaud/ Guyana News, Sports, Businesss and Entertainment Sun, 08 Nov 2009 00:26:54 -0600 http://wordpress.org/?v=2.8.5 hourly 1 By: Joe Coxall http://www.stabroeknews.com/2008/business/08/08/the-us-sub-prime-crisis-review-prospect-and-retrospect-rajendra-rampersaud/comment-page-1/#comment-17748 Joe Coxall Tue, 12 Aug 2008 02:15:54 +0000 http://www.stabroeknews.com/?p=19124#comment-17748 In reality, there was no such thing as a subprime mortgage crisis, that was just part of the lies and coverups perpetrated by the Federal Reserve, the banks and the media to hide their role in one of the biggest money hijacking schemes in history. When a borrower takes out a mortgage, that money does not come out from the account of bank depositors. That money is created by a singe computer entry in the banking system. In order to keep this great big Ponzi scheme rolling along they must keep pulling in more borrowers since they are only supplying principal and not interest. In order to hide their crime, they came up with complex schemes. 1. SIVS, (Special Investment Vehicles) sounds impressive, what they did is simply remove the bad mortgages from their books so it appeared that they were still keeping with the banking requirement of fractional lending, which only allows them to lend ten dollars for every dollar in their hands.The down side of this risky lending practise is that if a borrower defaults on their loan, then the bank is in the hole for ten times that much. 2. CDS, (Credit Default Swaps) They knew these mortgages were junk, so in order to make them attractive as investment vehicles they had hedge funds credit default guarantees in the form of CDS. Hedge fund companies are LLC, (Limited Liability Corporations that do not have all the money to cover all the mortgages they insured. Moreover when the investor thought he was completely covered in a risk free investment, he was not. The hedge fund companies simply declared bankruptcy and moved on. The investors were left holding on to a useless package. In other words it appeared to be similar to home insurance but was more like insurance fraud, and the banks knew all about it, because they created it in the first place. This great big Ponzi scheme has now reached it's mathematical limits. Time for the US government to nationalise every bank that goes into failure. Time for the government to take away the control and distribution of it's money from the hands of the feds and throw them all in jail. Every US dollar in your pocket is a loan, a Federal Note. Check your dollar bill, it does not say Federal currency. That dollar was created as a loan to be paid back to the feds by the government, you, me and all taxpayers in America alive or still to be born. It will not be easy for the US Government and their corrupt puppet congressmen to wrestle the monetary system from the Feds. Abraham Lincoln and John F. Kennedy were two Presidents that tried. They were both assassinated shortly after passing laws to place the control of money back into the hands of government. No government or country is safe from the power and control of this small but powerful elitist banking cartel. Even though Mexico produces a large quantity of oil, they are still unable to get out of the debt that the money cartel along with Henry Kissinger and Goldman Sachs conspired to rob them of all their wealth decades ago. Bear Stearns was still a solid company days before their stocks fell to two dollars. It was JP Morgan that was in trouble because of their risky business practices. It so happens that the CEO of that company also sits on the board of the feds. The Feds could have easily bailed out Bear Sterns directly, but that was not the intent. the intent was to bail out JP Morgan with $53 Billion dollars and make it appear that it was done in order to save Bear Sterns. They covertly gave out insider information that allowed predatory,naked short sellers to rob Bear Sterns blind. The employees who held 30% of the stock share saw it drop from $186.00 per share to $2.00 almost overnight. Who foots this bill, the tax payer. We are there all economic slaves to this system. to add insult to injury, we are made to pay for our own enslavement in the form of Federal Taxes. Joe. Joe. In reality, there was no such thing as a subprime mortgage crisis, that was just part of the lies and coverups perpetrated by the Federal Reserve, the banks and the media to hide their role in one of the biggest money hijacking schemes in history.

When a borrower takes out a mortgage, that money does not come out from the account of bank depositors. That money is created by a singe computer entry in the banking system. In order to keep this great big Ponzi scheme rolling along they must keep pulling in more borrowers since they are only supplying principal and not interest.

In order to hide their crime, they came up with complex schemes.

1. SIVS, (Special Investment Vehicles) sounds impressive, what they did is simply remove the bad mortgages from their books so it appeared that they were still keeping with the banking requirement of fractional lending, which only allows them to lend ten dollars for every dollar in their hands.The down side of this risky lending practise is that if a borrower defaults on their loan, then the bank is in the hole for ten times that much.

2. CDS, (Credit Default Swaps) They knew these mortgages were junk, so in order to make them attractive as investment vehicles they had hedge funds credit default guarantees in the form of CDS. Hedge fund companies are LLC, (Limited Liability Corporations that do not have all the money to cover all the mortgages they insured.

Moreover when the investor thought he was completely covered in a risk free investment, he was not. The hedge fund companies simply declared bankruptcy and moved on. The investors were left holding on to a useless package. In other words it appeared to be similar to home insurance but was more like insurance fraud, and the banks knew all about it, because they created it in the first place.

This great big Ponzi scheme has now reached it’s mathematical limits. Time for the US government to nationalise every bank that goes into failure. Time for the government to take away the control and distribution of it’s money from the hands of the feds and throw them all in jail.

Every US dollar in your pocket is a loan, a Federal Note. Check your dollar bill, it does not say Federal currency. That dollar was created as a loan to be paid back to the feds by the government, you, me and all taxpayers in America alive or still to be born.

It will not be easy for the US Government and their corrupt puppet congressmen to wrestle the monetary system from the Feds.

Abraham Lincoln and John F. Kennedy were two Presidents that tried. They were both assassinated shortly after passing laws to place the control of money back into the hands of government.

No government or country is safe from the power and control of this small but powerful elitist banking cartel. Even though Mexico produces a large quantity of oil, they are still unable to get out of the debt that the money cartel along with Henry Kissinger and Goldman Sachs conspired to rob them of all their wealth decades ago.

Bear Stearns was still a solid company days before their stocks fell to two dollars.
It was JP Morgan that was in trouble because of their risky business practices. It so happens that the CEO of that company also sits on the board of the feds.

The Feds could have easily bailed out Bear Sterns directly, but that was not the intent. the intent was to bail out JP Morgan with $53 Billion dollars and make it appear that it was done in order to save Bear Sterns. They covertly gave out insider information that allowed predatory,naked short sellers to rob Bear Sterns blind. The employees who held 30% of the stock share saw it drop from $186.00 per share to $2.00 almost overnight.

Who foots this bill, the tax payer. We are there all economic slaves to this system. to add insult to injury, we are made to pay for our own enslavement in the form of Federal Taxes.

Joe.

Joe.

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