Understanding EXACTLY How The BANKSTERS Are STEALING Trillions From US

[Segami]

:smoke: :smoke: :smoke:



" The financial crisis that exploded in 2008 isn't over; likely the worst is yet to come. As Matt Taibbi says in his new expose', Griftopia, the stunning rise, fall, and rescue of Wall Street in the bubble-and-bailout era was the coming-out party for the network of looters who now stand at the pinnacle of American political and economic power. These looters--the largest players in the financial industry and the politicians who do their bidding--have been growing ever more powerful for a generation, transferring wealth upward through increasingly complex financial mechanisms and political maneuvers. The crisis we've been through so far was only one terrifying manifestation of how they've hijacked America's political and economic system. And with regard to what they're going to extract from us, they're just getting started.


Skeptical?


- The outlines of these financial-political arrangements are clear, and it was within the web of financial, regulatory and political malfeasance that the financial meltdown began. At the center, hucksters systematically sold trillions of dollars of fraudulent securities to unsuspecting people across the globe. And it was all done under the noses of regulators, each apparently vying for the title of "Inspector Clouseau."


- Thanks to the system's policy of full non-disclosure, a $2 trillion US scam turned into a $30 trillion global meltdown. No one knew which securities were toxic. Consequently no one trusted financial companies or any of their products. This non-disclosure continues and could easily take down even a bank as big as J P Morgan.



- Uncle Sam's financial guarantees now total $24 trillion. The Federal Deposit Insurance Corporation alone backs $6 trillion in current accounts with essentially zero reserves. If there was a run on American banks, Uncle Sam would have to print those $6 trillion, causing hyperinflation, which would trigger the other $18 trillion in guarantees, meaning trillions more would have to be printed, causing even more inflation. Anyone not running for their money to buy something real would end up with worthless cash. Uncle Sam's dirty little secret is that he's guaranteeing pieces of paper, not purchasing power.


- According to Matt Taibbi, in a recent conversation with Thom Hartmann, "the big banks are showing up at the Fed with essentially worthless piles of mortgage-backed securities and using that as collateral to borrow trillions of dollars, at very low interest rates, which they then use to gamble, with confidence, in the stock and derivatives markets. What gives them this confidence you might ask. The answer is the high-powered and super-fast computers they use, that can jump in ahead of other traders, taking advantage of millions of relatively small price movements in the span of minutes. Essentially they are, by constantly skimming all this cream, a million times a minute, off the top of the market, extracting a kind of tax on all other traders as well as on the American people as a whole.



cont'


http://www.opednews.com/articles/Toward-a-better-understand-by-Richard-Clark-110128-258.html


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[BzaDem]

1. There is no reason to run on a bank, since you are no better off with cash than with FDIC insured

deposits.

The reason for the bank runs in the 30s was due to a lack of FDIC insurance (and the collective action-ish problem that resulted).

[snagglepuss]

2. K and R nt

[cutlassmama]

3. Naked tryranny

[truedelphi]

4. Going all the way back to 2008, someone on DU posted this:

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=103&topic_id=345913

And quite a bit later, I chimed in with this:

Back on Tue Feb-17-09 01:39 PM by truedelphi
And O'Driscoll saying that he doesn't see how they can be paid is exactly right. Our economy can only generate 13 Trillion dollars worth of an economy during good times - so to pay out 550 Trillion dollars would involve our great great great great grandkids paying back the loans.

We keep printing up money as though doing so has no effect on anything other than to loosen the noose around our necks. But the nine to fifteen trillion bucks that our government has already extended to our economy via loans from China and the printing presses working overtime - eventually this will cause inflation. When we reach a point wherein bread is 12 bucks a loaf,then we will see that we should have avoided doing this. But by then it will be too late.

[Enthusiast]

6. And these assholes want to cut social security.

Give me a break.

[socialist_n_TN]

9. Yeah, the way I look at it............

We (taxpayers) bailed them out to the tune of 750 BILLION dollars or so. Then spent ANOTHER 750 BILLION on a stimulus that should have been TWICE as much. That's 1.5 TRILLION dollars spent as a direct result of these douchebags incompetence and greed. NOW, because there's so much soft money in the system BECAUSE OF THEM, they want us to bail them out again by cutting OUR safety net.

Capitalism= hubris and greed.

[Segami]

10. This criminal cycle will never stop until we start arresting, charging & jailing these banksters.

[Enthusiast]

11. You are absolutely correct.

The RW talking heads that always crow about 'personal responsibility' only want it applied to the young and the poor. If a long prison sentence is a deterrent to blue collar crime, it is an equal deterrent to white collar crime.

[Segami]

7. Words well spoken way back in 08' and 09' which is coming home to roost today.

I can only say that we OURSELVES must shoulder a major portion of responsibility for the current state of our depleted situation. A demonstration of public outrage taken to the streets IN EVERY STATE demanding that justice be served against the criminal culprits responsible should have been expressed.


That never happened. We allowed ourselves to be distracted with the likes of Glen Beck, Sarah Palin, Limbaugh et al with their daily drivel and since the public wasn't outraged, these criminals continued to fleece while flipping the bird at every politician, regulator and working stiff along the way who lost their livelihood, directly and indirectly.

[truedelphi]

13. Those of us who were outraged were

told to simmer down - no one deserves "a pony."


Someone here on DU, amuch wiser person than me, told me in Nov 2008 (late November) That Geithner was slime.

I researched this man, and found out it was true. Due to Geithhner's destruction of the Japanese economy, back in the nineties, the Australians understood Geithner. And the Australian press had a field day reporting on how Obama either didn't understand who Geithner was, or understood him all too well.

But saying what I said about Geithner circa Feb-March 2009, it meant I was continually
chided by 98.5% of this board for not giving Obama "enough time."

In our day and age, the Federal Government is run by appointments. So once the appointments are posted, and once you understand who it is that has received the appointments, you don't need to give anyone any more time. And sadly, even for those who feel Obama needed "time," Obama has now had over 24 months to figure out who Geithner is. And it seems like he still stands behind the remark that he made during the Press Correspondents' Dinner, 2009, that Geithner is "my good buddy."

[Enthusiast]

5. Allowing this to continue is not only an act

of aiding and abetting a crime, it is also an act of treason of the highest order.

[Segami]

12. The long term financial & economic damage cause to this country by the criminal actions of these

banksters is a direct assault lobbed against this Nation's financial, economic & military security. Can such criminal acts be legally considered domestic econo-terrorism?

[Enthusiast]

14. It sure looks like it to me. nt

[Hotler]

8. k&r n/t