rhino: How a Keynesian world worksSubmitted by rhino on Fri, 08/07/2009 - 21:54
I am not going to answer any questions here so my critics are free to criticize as they wish, but I wanted to add a bit of news to a topic that I had commented on earlier this year. If you missed that topic I am sure there are others that can link you to the topic here at dailypaul in the comments below. It is not a secret; I am merely making it difficult to follow.
I want to preface this by saying that I would request that members here that know who I am would not mention the city from where I reside, it may limit the news that I receive, but, as always, you are free to do as you choose.
I am in the midst of a long-term investigative piece that has the potential to damage the viability of the Patriot Act. When I say long term, I mean years. But I wish to add an update at this time ….
Not only is the Patriot Act allowing local officials to access information that they would not have access to without the legislation, it has created new revenue streams for local governments via federal and state funded grants.
Through this grant process it has been able to slowly build a smoke screen to hide what is really going on in the short term and its possible future motives as well.
I want to add that a bit of this is speculation on my part to date, but I would bet that it will prove to be true in the future, either by me or other sources. I am not going to note what is speculation and what is not at this point, but I am sure, some, if not most of you can figure that out on your own.
O.K. now that we have that out of the way:
It has come to my attention that the financial industry, on top of the bailout money from TARP, TALF, the FED, and other semi-transparent transactions, has been getting direct assistance through HUD and these transactions are completely opaque. In an effort to prevent further write-downs, the regional banks have partnered with the regional HUD agencies in an effort to flip distressed assets. I cannot go into too much detail, but here is the brief summary of how it happens…
The banks sell the property to HUD for literally nothing. This allows the bank not to incur certain fines and fees, which are absorbed by HUD. HUD finances the remodel to get it ready for sale. Then, after the sale, through a contractual obligation with HUD, the bank receives an undisclosed amount of money usually equal to its marked to market price or the selling price, which ever is the lesser, and quite possibly getting the marked to market price regardless of the sale price.
More to come.