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Hi Charles:
You can be assured that even a lot of non Americans are really pissed off at
the US Government and the Fed. But I'm really surprised that, so far,
Americans are taking a lay back attitude to all these crooks, deceits & BS
the US government is doing to its people.
Have a good one
Jeff
-----Original Message-----
From: realtraders@xxxxxxxxxxxxxxx [mailto:realtraders@xxxxxxxxxxxxxxx] On
Behalf Of chaze
Sent: Tuesday, December 16, 2008 11:39 PM
To: realtraders@xxxxxxxxxxxxxxx
Subject: [RT] FRAUD AND THEFT
Wall Street Coup D'état
Ceri Shepherd
The Bailouts now stand at $8.5 trillion Dollars and the
vast majority of this money has been stolen by the Wall
Street insiders, as I will now demonstrate beyond any
reasonable doubt.
The Bailout money will be financed in three ways
1. More taxation.
2. Sale of new debt, to be added to the existing $10.6
trillion Dollars of debt.
3. The money will simply be printed therefore devaluing
the purchasing power of all your existing Dollars.
So you will be taxed more, and you will have to suffer
poorer government services. As far more of the
government's income via taxation is used to pay the
interest on all the existing and new debt, and finally
your Dollars will buy a lot less.
That is the future, and it is the future because the vast
majority of the $8.5 trillion Dollars of bailout money has
simply been stolen.
We were originally told that the whole problem was a sub
prime mortgage problem. Unfortunately this is a LIE. The
amount of all sub prime mortgages in America is $1.3
trillion Dollars. But the bailouts are already $8.5
trillion Dollars and growing daily. Why do you need $8.5
trillion to fix a $1.3 trillion problem? And that's
assuming that everybody with a sub prime mortgage goes
into foreclosure and that the foreclosure sale proceeds
are precisely zero, not exactly a likely outcome.
So lets look at it another way the total value of all
residential mortgages in the USA prime, ALT A , and
Subprime as of August 2008 according to the Federal
Reserve is $10.6 trillion Dollars THAT IS EVERY MORTGAGE
IN AMERICA. According to the Mortgage Bankers Association
at this same time 9.2% of all mortgages were either
delinquent or in foreclosure. So let's assume that 100% of
all these mortgages eventually go into foreclosure and
that at auction the total proceeds for the foreclosure
sales are zero. I am sure you will agree this is once
again a highly unlikely outcome!
$10.6 trillion X 9.2% = $975 Billion Dollars
So a total of $975 Billlion Dollars would be required as
an absolute maximum to bail out every single foreclosed
mortgage in America. So why do we have an $8.5 trillion
Dollar solution to solve a $975 Billion Dollar problem?
If you buy a futures contract you can either buy it LONG
or SHORT. If you are LONG you believe that the price of
the underlying asset will rise, if you are SHORT you feel
that it will fall. It is a zero sum game somebody wins and
somebody loses. If the winner wins $1000 then he takes
this $1000 from the loser. The amount of contracts
outstanding or open interest is always in balance. All
transactions and trades take place within a regulated and
transparent exchange.
OTC derivative contracts are basically the same as
regulated futures contracts. They are also zero sum, BUT
they do not take place within an exchange. So they are not
regulated and they are not transparent. What has happened
is that a band of insiders have taken such huge OTC
derivative bets that they have been able to push the
markets, so that many of these OTC derivative contracts
have triggered. Because the amount of leverage used or the
notional value of these contracts is so high it takes very
little movement for the outsiders to become insolvent, it
is leverage gone mad. The Insiders knew that this would
happen, but they also knew that the Government would not
allow this corrupt system to fail.
Hence the $8.5 trillion Dollars of bailouts, this money is
simply being transferred or funnelled from the taxpayers
to a select band of Wall Street insiders. Remember it is a
zero sum game the outsiders Bear Stearns, Wachovia,
Citigroup LOST but somebody gained an equivalent amount.
As Gordon Gecko stated in the film Wall Street.
"Money is not lost that's the illusion, it is simply
transferred"
The Politicians and media go on, and on, about how this is
necessary to save the system, too big to fail, etc, etc.
It is all rubbish they are nothing more than paid salesman
for the bankers, it is a Government of the few and only
for the few. The banks had huge unregulated bets amongst
themselves and all kept in secret, the outsiders
inevitably lost, and your money is now being funnelled
directly to the bet winners. It is theft pure and simple.
If you take a bet with somebody and you win BUT the loser
cannot pay then that bet is worthless, and it dies. Why
should American taxpayers pay for these failed bets?
Surely the insiders had completed their "due diligence" on
the counterparty risk? The reality was that they had not
because they knew they would win, and they also knew that
the government would pay the winnings via the taxpayer.
What people cannot accept is that America is in no way,
shape, or form a democracy, and neither is any other
western country. The politicians are bought and paid for,
as are the media. With the Mcain Vs Obama election you had
a simple choice you were voting for the bankers man or the
bankers other man, the outcome will be the same it always
will be in a bank oligarchy. .
You think I maybe wrong? Then I leave you with a very
sobering thought.
$8.5 Trillion Dollars would buy exactly 80% of all the
mortgages outstanding in America. So imagine for the same
money that your government or is it the bankers
government? have already given to the bankers they could
have instead sent you a cheque for 80% of your outstanding
mortgage, that would be some Christmas present. Instead
they decided to send all of this money, YOUR MONEY to a
select band of Wall Street insiders.
If your mortgage was now 80% paid off, would it not
provide quite a "stimulus" for the real economy? And it
would not cost $1 more than what they have already
committed to the bankers.
It is an $8.5 Trillion Dollar and growing daily, solution
to a $975 Billion Dollar problem. The surplus has simply
been "transferred". It begs the question, why are the
Government paying off the gambling bets of Wall Street?
These bets had no purpose, they added no value, and
provided no jobs they were simply symptomatic of the
unregulated and opaque casino that wall street has
unfortunately become. This again is a matter of deliberate
policy otherwise the thieves will be identified. Let them
fail, if 80% of all the outstanding mortgages were paid,
we would not need much of a credit or finance industry.
New start banks and foreign banks could easily provide
this facility.
So I leave you with one thought this Christmas. The
bailouts if redirected could pay 80% of every mortgage in
America INCLUDING YOURS.
Ironic that a few bankers have engineered the biggest
robbery in history.
Ceri Shepherd
www.trendinvestor.info
15 December 200
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