The $200 billion bailout for predator banks

house.jpgAmericans aren’t too keen on money, that is, how it works in the economy; other than, ‘I put this much time in, and you pay me this amount, and the government takes something off the top.’ So what is money? Basically, it’s fiat, no more values than the paper it is printed on, however, there is a very deep and trusting psychology to money and credit. Trust is at the core of any economy based on money or credit and let’s face it our cultures has far too many lawyers to say we trust anyone.

But trust or “who do you trust,” isn’t really where I want to go with this at the moment.

Today while listening to CSPAN’s Washington Journal their guest was Vincent Reinhart, former Monetary Affairs Director for the Federal Reserve, now working with the American Enterprise Institute. Yep, a Neocons. As he was putting his tight lipped spin on his remarks one thing in particular he said struck me, ‘there are more property/dwellings on the market now than families in the US.’ This means houses and condos are sitting empty, with no one to care for them. The families have left because they couldn’t make their mortgage payment, others poor investments, not to mention many home owners no longer know who to pay, the paper has been passed around so often, institutions have closed or managers have absconded with the funds, no one knows who even has the deed.

So here are a few thoughts… the largest investment most people make in their life is the purchase of a home and it has been driven into our heads since at least the Reagan Administration that home ownership makes for better neighbors. Now we have far too many properties on the market in fact, when it comes to investments the money presently owned if sold for cash today would yield .26 on the dollar, imagine that?! Banks that hold the paper on these homes are better off letting them sit vacant until the market recovers, if and when. But in the mean time the banks aren’t making any money and falling deeper in debt and now they are selling their shares to foreign nations like Saudi Arabia and China to help bail them out. In exchange the Saudi and Chinese Governments get a giant foot in the American door.

Is this really wise? …Human Rights being a sore spot for both of these nations. Further, the US Government has stepped in and said, ‘we will bail you banks out and the American people will pick up the tab.’

So get this! Not only are you paying taxes to keep the country going you are now responsible for bailing out the private banks that ripped customers off while they sell their board of directors to foreign governments with very questionable human rights and environmental issues.

Most people know what happens to credit cards when you’re late with a payment; you are saddled with fines, lose the interest rate and experience a huge new jump in that rate, if you bounce a cheque it’ll cost you at least $60 after you pay both banks for this discretion. Now you have a group of private individuals who have made horrible decisions telling YOU to pay for their folly and you are allowing Congress to bail them out and on top of all that telling you to pick up the tab. ARE YOU NUTS?!

This country is saturated in debt, it has borrowed so much money and stretched paper so far across the world that there’s no place left to stretch. The proposal is to sell this devalued property to foreign countries for pennies and you, your children and probably your grand children will pay the balance. You are losing your country folks, piece by piece.

If you’re a Globalist this is good news, these foreign governments will have property in the US and they have to fill these structures with people who will work, invest and get involved in your political system on behalf and gains made for their own nation, not yours.

If you are an American you better start thinking long and hard about your fellow Americans and decide if you can put aside your differences long enough to give them a house to dwell in, develop good neighbors and preserve our democratic culture and way of life.

Think about this again: the largest investment one makes is the purchase of a home, imagine if you were given an unwanted home and your responsibility was to maintain it and pay the local taxes. What could you now afford with the money you no longer need to pay for shelter? Good health insurance? A better education of your children? You would have more freedom to choose and new competition in these services would allow for real choice.

So here are the options. Sell US land to questionable foreign interests for pennies and pay them .74 for every dollar they spend or give each American citizen a home and the freedom to choose what is best for their family and strengthen the nation after this banking debacle. In other words, hand your country over to the elitists who will pillage your economy making you slaves while disregarding your best interest and environment or make peace with your fellow citizen and develop communities that flourish?

The question is who do you trust?

I’ve said this before and we will see if I’m correct or dead wrong, the greatest adversary of the American people are the American people.


Citi
Morgan Stanley
Federal Reserve Bailout
Palast

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