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
When ever someone puts a gun to your head you kind of know it is not in your best interest.If the government needs to raise capital why don’t they just do what they have done in the past. Increase the weekly Treasury auctions and raise the cash. They might want to nationalize the Federal Reserve Bank. We need a president who can restore full faith and obligation, got any ideas?
Yes.
We know the corrupt nature of our system and that it is getting even more blatant, so how can we take back control of our land, public systems and monetary system. What can we do to stop the bail out (the financial coup d etat)?
Thank you Catherine Austin Fitts for your wonderful gifted insight. And thank all the great Americans who have responded. They have not seen through this hoax. I suggest we starting buying out the Federal Reserve System that prints our money and has helped to create this evil fraud to gain more tax money from the American people. The FRS is a private owned organization that gained control of our money and total economy with a curious vote, December 24, 1913 when almost all the Senate had adjourned for the holiday. The only thing never amended and still stands, gives Congress the right to buy back our once stable means of controlling our own Federal Bank. Apparently the FRS is solvent with 1.2 trillion dollars in assets, so let them bail out the corrupt Fanny May and Fanny Mac’s that should never have been chartered by Congress in the first place. If our Congress was truly sincere in helping the American people, they would pull the charters of the two above, and apply the 700 billion toward buying back the FRS; we have to start somewhere.
They have been detailing these and some other reasons such as Paulson’s possible conflicts of interest and the possibility Bush is intentionally doing all this to transfer wealth again at http://www.vivzizi.com
On Wednesday night, Oct 1st, on Coast to Coast AM you mentioned disinflation. Do you think we are about to have inflation, hyperinflation, or deflation?
I commit to write a letter to our newspaper editor suggesting we holding our federal tax dollars at the county level, since our federal government is no longer follows the counstitution, for the federal services funding.
Great Work!
Brad
Not passing the bailout will take a very heavy toll on the economy and anyone who is invested in the stock market. I don’t think most people understand that business needs credit to survive, and that doesn’t mean they are dishonest, poorly run companies, in fact, most solvent, honest businesses in this country need credit to meet day to day operations like payroll, health care costs, paying their electric bill, etc. They don’t take out a loan for each of these things, but need an open line of credit through a bank to handle the ups and down of collecting on their receivables. Running a business isn’t like balancing a personal checkbook, so we can’t think of it that way.
It also seems that most people seem hung up on this plan because they see it as just writing a check to rich bankers, and that’s really not the case. And you can look at it however you want but most of the bankers affected by this are either so fantastically wealthy that it won’t make a difference if this passes or not, or have been totally wiped out and lost their jobs by the recent bankruptcies. In other words, that game has already played out for the most part, the bad banks were destroyed, and now the credit mess is spreading to good companies and ruining them. Standing in the way now just seems like it will punish ordinary Americans with retirement accounts that will be decimated, small business who can no longer meet payroll because of a lack of credit, and students trying to get loans to go to school.
I know everyone is upset we’re in this position, but it’s where we are, and we have to deal with it. Just like the Iraq War, it’s pointless to cast blame at this point, we need to figure out a plan to deal with our current position. You can demonize all you want, but at the end of the day it’s going to be your livelihood at stake, so I hope people find more qualified sources of information on this plan and reconsider.
I would like to Post the Plan that I have designed that will cost Taxpayers “ZERO” by working backwards (really the correct way) from Home owner up. Homes would be payed for for Less then the current payment and would be paid for, with all Bills, in less then 14 yrs. Lending Institutions would get all their Money back and I would donate $1,000.00 to each individual that participated, for Energy costs (as long as I can figure out the Tax stuff).
My plan is long but most of it is charts etc. I need to Fax this to Catherine ASAP since I promised Her weeks ago I would and have not due to my treatments.
This plan works and I need someone to try it out but before that I need to complete my promise to Catherine.
If some one knows a Fax number for Catherine please Email me ASAP.
Michael OReilly