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
I commented before about a plan that I created by modifying a plan from the Financial Group I am part of, would pay off the Mortgages in, heading for or in risk of foreclosure without the use of Taxpayer money.
I have sent this plan, via FAX, to Senator Jon Kyl during Todays debate and Vote For the “Bail Out”. This Plan was reviewed by one of the largest Banks in the Nation confirming my opinion that it was a good plan and would work as designed.
Senator Kyl nor his Washington or Phoenix, Az Office never called or E mailed or called me to let me know that he looked at it or if they even received it. I had requested they do either one.
If I can get Catherins FAX number I will send a copy to Her as She requested a couple weeks ago on the Coast to Coast AM Radio Show as we discussed.
I just heard Catherine on Coast again. She said something about putting plans on this Web site? My plan is about 30 pages and I can FAX it? I need to see if there is an investor or Bank that would use this as a Tool in their Town to help people.
Please E mail or call me at 480-206-6590 with ideas or how I can Post the plan here!
Michel
Is there any way all Americans can propose a “class action lawsuit” to investigate all of these allegations and make them pay not only for the economic mess they put us in, but put a stop to what they intend to put taxpayers through? Are we absolutely helpless in this matter?
Catherine, I can’t tell you how much I appreciate the resources and sane reasoning you provide.
There is a great petition on Campaign For America’s Future:
Tell the House to Stand Up for Main St.
http://ourfuture.org/page/2008093821/wall-street-bailout-must-be-main-streets-terms
You can sign and send it to Pelosi, your senator and congressperson simultaneously.
The website has many highly informative articles, and petitions for alternative plans.
I rewarded my Congressperson with a campaign donation for his “no” vote, and urged another one on Fri. The “sweeteners” (ie, pork or bribes) are intended to appeal to conservative House Reps. Tell them not to take the bait. Blue Dog Dems and progressive Dems might still be persuaded to vote no because Blue Dogs won’t like the cost, and the bill is actually worse than the original from a progressive standpoint.
The travails of cutting through the spin is a daily mental marathon which in itself defies human survival. The practical aspects of true discovery, as Catherine has always explains, is follow the money. We are being bombarded by left brain overkill which results in absolute fear every time. I am concerned as everyone else, but my main concern is not debate 2 hours past the deadline, but a strong desire to “GET THE FACTS STRAIGHT” and be adult enough to face the music.
The same power names buying (saving, bailing, helping, etc.) are the same power names that are being bought. Jack is helping John but John is Jack. I had nothing to do with any of it.
Hindsight is infamously hindsight. What type of delayed conversations will we be be having one year from now? Should we finally not care what others think and realize our situation for what it really is and not waste any more precious moments in delayed response discussions.
I am completely open ears to collective thinking about WHAT the next step to be taken by those who COMPLETELY GET THAT THINGS HAVE NEVER BEEN WHAT THEY SEEM, AND SO IS THE CASE RIGHT NOW.
No one has ever bailed or saved me, but it feels like personal inaction is suicidal. I have no financial investments to fall back on but it should never excuse me from knowing or getting the economic facts straight in my own head. Always remember how nothing is accidental, this has been well planned out years ago. Things are totally on target. Lets wrap our heads around this and move forward. We are all prime candidates for even more mental manipulations if we can’t get it right in our own head. This is the perfect storm.
THE HOUSE MEMBERS ARE ALL UP FOR RE-ELECTION IN ONE MONTH. IF THEY VOTE FOR THIS BILL AS IT STANDS VOTE THEM OUT OF OFFICE, PERIOD NO EXCUSES!!
Why not let me buy the toxic assets?
That’s right. Put all the troubled assets into a fund, open a Web site, and sell shares/warrants directly to the public.
I have a $1,000 that I’m willing to invest at “10 cents on the dollar”. If the underlying assets really are worth more than they are currently valued, the investing public will understand that and purchase the debt.
Real money; real people, a real solution.
The congress could vote to allow the added incentive of eliminating any potential capital gains for these financial instruments as well as allow deductions for any losses.
Let the private investors buy them first, then the institutions.
Letter I sent to one of “my” senators (who both voted for this nonsense), Saxby Chambliss:
You can’t possibly be as blind and ignorant as you come off, can you? Or do you think I’m that dim witted? I, for one, cannot e bought – not with ALL of EVERY 401k or tax break… you think promising to steal less is going to buy your forgiveness?
Let me be really clear: You caved. You voted to give the economic terrorists their ransom. We should not negotiate with terrorists – of any form or nationality.
By canonizing this “too big to fail” doctrine, you have officially declared the corporation more relevant than the citizen. You have voted to take what little power we had left and give it to financial institutions. What “safeguards” are you going to bring to bear against a “too big to fail” entity? In terms of the citizen, this would be the equivalent of trying to control Superman with congressional monitoring. These institutions, given that status, will be the New Gods of our country. Congress, the judiciary, and our Constitution will be reduced to nothing more than PR.
You have voted to bet the future of this country upon the good will of international corporations. You are either a fool or a villian.
You may investigate, but you will have no power to prosecute anyone of any real consequence in this matter. Will China extradite an officer of the state to answer charges of not acting in the best interest of the US? Will Russia send you her financial officials? Will you hang Paulson in the courtyard? Will our legislative bodies have themselves arrested? Your investigation stands to accomplish nothing more than appeasement – and I WILL NOT BE APPEASED. You had this chance to stand up for liberty – and you didn’t. Instead you stood with tyranny and injustice.
Damn you, sir. Just damn you.