by Catherine Austin Fitts and Carolyn Betts, Esq.

(1) Crime that pays is crime that stays.

There is reason to believe that Wall Street and those they represent are holding loans without collateral, multiple loans secured by the same properties, and other fraudulent instruments among the “troubled assets.” Based on the secret “Treasury Conference Call” with 800 Wall Street insiders, we know the deal proposed to be passed by Congress isn’t the real deal promised to Wall Street.

(2) This smells like obstruction of justice.

Bail-out without due diligence of so called “troubled assets” is a perfect way to hide documentation of financial crimes. It is also a perfect means to launder both the past ill-gotten gains and new federal money spent recklessly and without necessary safeguards and oversight mechanisms. Be very suspicious when they tell you “we just can’t tell what’s in these troubled assets.” We can assure you that the federal government has field offices all across the country that deal with significant amounts of real estate and mortgage assets on a daily basis. If Treasury refuses for more than a decade to comply with the laws, with approximately $4 trillion missing (and counting), it is not competent to manage $700 billion of taxpayer money while its arm is twisted by Wall Street.

(3) Wall Street owes the federal government money.

We need to get stolen money back from the banks that served as depositories for the US government (including trillions for which the Pentagon and HUD could not account) and punish them, not create another opportunity for them to game the system and engage in criminal enterprises to rob consumers. To the extent there has been regulatory wrong-doing, let’s not let the miscreants leave town with the evidence.

(4) Good guys are shut out.

A bail-out provides no way for honest leaders to come to the fore and use their creativity and expertise to restore balance and integrity to the system or for unproductive and poorly-managed banks that contribute to current over-capacity in the banking system to die a dignified death.

(5) This results in more investment in the “bubble economy.”

Spending massive amounts on non-productive uses (“buying” worthless credit default swaps, mortgages with no collateral and derivatives, which could even include the derivatives used to manipulate the precious metals markets) as opposed to productive uses (repairing infrastructure, creating alternative energy systems, supporting inventing and production of “green” products) is inflationary.

This bail-out will drive prices of food, water and energy up for the people who can least afford it.

(6) Bail-out does not result in capital circulating in healthy ways.

The bail-out of Wall Street and too-big-to-fail banks and insurance companies that are getting bigger by the minute by swallowing up other failing financial institutions (and creating more institutions that are “too big to fail”) does not result in trickle-down to those whose money was stolen in recent swindles (S&L, dot.com, current housing crisis), i.e., the taxpayers/middle class and working poor.

(7) These arrangements will result in more corruption.

Centralized “fixes” are sure to result in black holes, no-bid contracts and other scandals.

(8) The bail-out drains the real economy, rather than invests in the real economy.

The US economy can’t be productive or grow if consumers don’t have jobs and can’t afford to purchase goods and services. Real stimulation of Main Street is accomplished through productive investment, not bail-outs that shift money to unproductive sectors. We should use all of our precious resources to reinvest in our people in the real economy.

(9) It props up sectors that need to downsize and consolidate.

There is significant overcapacity in the financial and banking sectors. Brainpower and talent needs to stop blowing financial bubbles and shift to economic activities that create real value.

(10) It is a temporary “fix” to keep Wall Street afloat until after the election.

Our resources are better invested in permanent, long-term solutions. This bail-out will not fix anything. Rather, it will help the perpetrators get away and ensure that the ultimate day of reckoning is worse.

The Administration wants to drain the real economy to bail out Wall Street. It seems to us that the more appropriate plan would be to require Wall Street to return the $4 trillion plus that is missing and use that to rebuild the real economy.

We think the time has come to reverse the flow. Go to any business school in the country. That is what they teach. Money should move out of unproductive sectors into productive sectors. The bail-out does just the opposite.

“Just say NO!”
Related Reading:

Bailout Mo’ Money Catherine’s Blog, March 11, 2009

67 Comments

  1. This is so disgusting. My senator voted for this awful bill, complete with all the pet projects added. I asked, and asked, for him to vote against it. We have unethical members in our congress who should be forced out and made to bring back the loot they took. They should be sued for standing in the way of correcting the ability of the mismanagers to loot Fannie and Freddie, some working in the Obama campaign now! They should be made bring back their loot too and their assets frozen until the investigation is complete. I have no faith in the investigation which is only going back to 2007, and am losing a lot of faith in our government. If this were such an emergency, why was it loaded up with pet projects of the members of congress? This is a sad day for our country and we badly need a congressional housecleaning.

  2. Dissapointed to see both my Senators from Texas, who I THOUGHT were conservative, have BOTH voted for this bailout. Enjoyed your clear thoughts and explanations on Coast-to-Coast AM.

  3. I agree with your 10 reasons and have been listening to you as well on the George Norrey Coast to Coast show and it has been quite intersting to say the least. I believe this is a way for those who are involved in bring ing about a one world order or make us more a part of the global economy they need to break our country and thus remove our sovereignty to be more pliable and to weak to stop this evil that is out to destroy our country. I hope that made more sense then it did writing it. I said all that to say there is more at play here then just our economy being effected for greed. Not a conspiracy theory guy ,but I’m not so blinded as to believe one can not exist either. This chimes in with the open borders movement and wasn’t many loans given to those who were illegal aliens for homes? This is just so amazing and yet so many Americans are still being led around by the nose ring through the press. Anyway I think I am just ranting now and ned a few minutes to think more clearly and write more intelligently. I just want Americans to unite and come together to take back our country while we still can through the ballot box. The time is now not sometime later and this economic issue coupled with these two that are what we are being given as the only two for president by the media. There is Bob Barr and there are other good men and women who could be voted into the congress and senate while we vote so many out of office. No time to be loyal to a party and time to just be Americans coming together for America. http://www.vote-itz-ur-right.com

  4. The companies need to take away from the CEO’s, Executives, Board Members, Board Chairman; all the cash perks, the multi million dollar salaries, and bonuses. Then take each and every mortgage that has a adjustable rate, and turn them into fixed rates of 5% or less. If stretching them out to 40-45yrs so be it. The companies need to make a way for the home-owner to afford and be able to keep their home. Then the US government needs to have the FBI,IRS, and any other agency to investigate who, what, why, and how this problem came about. During such investigation, anyone found guilty of cooking the books, and having bank accounts off-shore NOT reported to the IRS, needs to put into prison. Also, IF any politician is found to have a hand in, or have made any type of profit, should be placed in prison as well. Those companies that are clean of any wrong doing should get a tax break, along with the taxpayers. In the long run, both the home owner and the companies profit in the end. Also investigate those in agencies who are suppose to keep things like this from happening. Place stronger rules/regulations and tougher laws for those who take advantage of lack in enforcement.

  5. Just heard Catherine on the Flashpoints show to hear the 10 reasons to nix the bailout.

    I have done the same thing Catherine mentioned on this Wednesday: I called my Congressman
    and both Senators prior to today’s vote. On Thursday I urge others to do the same and tell them to vote no on HR 1424. Interestingly I got the short phone call treatment like Catherine did as well where they didn’t take my name and address in one instance.

    Also it was interesting the way some of the aids responded– I just heard overtones in the
    thank you’s that they didn’t believe what they were hearing.

    What they were hearing from me was: “No bailout– not today, not ever.”

  6. The New York Times
    When Madmen Reign

    By BOB HERBERT
    Published: September 29, 2008

    If you want to read an example the type of devious cover ups that are being put out by the “higher class” media, read this one by Herbert. http://topics.nytimes.com/top/opinion/editorialsandoped/oped/columnists/bobherbert/index.html?inline=nyt-per

    That’s right, they are only crazy, not clever thieves.

    One of the Laws of Power is to play dumb and/or innocent, or crazy, on purpose. (Remember the Roman Empire?)

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