Breaking: This guy calls out Paulson!! THE MOTHER OF ALL FRAUDS!! URGENT DIGG !!!

According to Chris Martenson in Section 6: The Sec'y has the authority to purchase mortgage-related assets under this ACT shall be limited to $700B outstanding AT ANY ONE TIME (THIS MEANS THE $700B IS A ROLLING AMOUNT, NOT A CEILING.)

WHAT THE LATEST BAILOUT PLAN MEANS, By Chris Martenson
Monday, 22 September 2008
REPRINTED BLOGPOST
Now that the details are out, we can safely state that the US political and financial leadership has completely sold out the taxpayers and have done so in a manner that is startling both in its recklessness and its brazenness.

The reckless part I will spell out in the details below.

The brazen part is in how this is being spun out as if the entire plan were hatched in hurried rush, at the last minute, after events forced the issue. This is the spin, but it is completely false.

Because many financial commentators ranging from Roubini to Roach to Calculated Risk to myself foresaw these events, we can be completely confident that these events were both anticipated and planned for long in advance. The only question was how they were going to be ’sold’ to the public. What better way than in the midst of a “massive financial panic” that required urgent action?

And now that the details are out, the plan is even more insidious than I ever dreamed.

On Friday the news started to leak out that perhaps $500 billion was the, uh, ‘floor’ for the bailout and that it might be up to 60% larger than that:

Quote:
WASHINGTON (Reuters) - The U.S. Treasury will propose a $500 billion to $800 billion government program to take toxic mortgage-related assets off the books of U.S. financial firms, banking industry sources said on Friday.

The sources said the government would acquire residential and commercial mortgages and mortgage-backed securities under the proposal, which needs Congressional approval.

A Treasury spokeswoman declined to comment.

So it looks like we are being ’softened’ up by Extremely Large Numbers coming in quick succession so that we’ll be too numb to argue when the real plan comes out. For the record my solution would have been very different.

Instead of buying these failed assets off of the banks for $500 billion, I would have preferred to see the banks receive $500 billion in loans, which they’d have to pay back from profits over time, while they retained the failed loans on THEIR books as a reminder to be more careful next time. Same cost to the government, but a very different message sent to reckless lending institutions.

And here’s the critical elements from the real plan released yesterday (Sat., 9/20) (hat tip to Lemonyellowschwin for posting this in the comments yesterday). Full details are all the way at the bottom.

Quote:
(a) Authority to Purchase.–The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.

OK - this starts out kind of like I expected. The definition is a little vague, unfortunately, having stalled at mortgage “related assets”. I would have preferred that they spelled this out because then we could have assessed which institutions were going to be helped out the most. Certainly these could have and should have been spelled out. This is vague enough to leave open the prospect that practically anything could be defined as “mortgage related” and I am certain we will see this provision abused. 100% certain.

Quote:
Sec. 6. Maximum Amount of Authorized Purchases.

The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time

Whoa! Stop! What is this “at any one time” language?? This means that $700 billion is NOT the cost of this dangerous legislation, it is only the amount that can be outstanding at any one time. After, say, $100 billion of bad mortgages are disposed of, then another $100 billion can be bought. In short, these four little words assure that there is NO LIMIT to the potential size of this bailout. This means the $700 billion is a rolling amount, not a ceiling.

So what happens when you have vague language and an unlimited budget? Fraud and self-dealing. Mark my words, this is the largest looting operation ever in the history of the US and it’s all spelled out right in this delightfully brief document that is about to be rammed through a scared congress and made into law.

But certainly if the combination of vague language and and unlimited budget will create the conditions for further fraud and abuse, at least we live in a nation of “checks and balances”, right?

Wrong.

Quote:
Sec. 8. Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

This language literally took my breath away when I read it. I am now beyond shocked at what is openly transpiring before our very eyes. I can think of NO legitimate reasons(s) for the right of review to be stripped away right from the outset. The illegitimate reason I can think of pertains to the vast riches that are going to flow into the pockets of the well-connected as a result of this act of piracy.

Many such people became fabulously wealthy as a result of picking up real estate assets for pennies on the dollar during the S&L crisis and that model has being reproduced here.

You can count on it.

This is just another straw thrown onto an already collapsed camel the confirms the fact that the US political system is broken and that the rule of law no longer applies within the US.

My final comment; if it looks like a looting operation, smells like a looting operation, and behaves just like a looting operation, it might just be a looting operation.

More on this later.

Last Updated ( Monday, 22 September 2008 )
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Oh golly, Liberty_Belle, I hadn't read your post, and I went and posted this thread about FedUpUSA.org which is run by Denniker!

There are videos there, and articles -- and a forum. More details in my post, but I'm glad you found his vids!

(Now all I need is a financial translator...)

I'd like to present something to my rep as an alternative to the bailout plan, and am considering this. Before I decide, though, I'd like somebody familiar with the things he's talking about to tell me that it's a market-oriented plan, and not a socialist plan. What is at the heart of what he's calling for? Would it require more government? He used a lot of terms I've never heard before; I've never had anything to invest, thus no urgent reason to learn about the "financial sector".

=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=
Join the Team! campaignforliberty.com

The most important letter in recent history.

http://digg.com/business_finance/Enabling_Act_of_2008_The_Ri...

"You are a den of Vipers.I intend to rout you out and by the Eternal God I will rout you out.

Here's a second installment and analysis of today 9/22

373 down

http://www.youtube.com/watch?v=ZZQPyVL7kKY

Yes, but who will listen. Great video, bobbing head and all..

That guy was good. He was a little distracting with his head bobbing but I loved what he said. Paulsen needs to be locked up.

Healthnut4freedom

"Trust in the Lord with all thine heart; and lean not unto thine own understanding. In all thy ways acknowledge Him, and He shall direct thy paths." Proverbs 3:5,6

please!

O Captain, My Captain, rise up and hear the bells!

My heart belongs to Ron Paul, but for now my ass belongs to Chuck Baldwin, www.baldwin08.com

dugg

I thought it was interesting.

http://www.dailypaul.com/node/63444

SHIP IT.
says

Everyone NEEDS to watch this! Holy shit

*Bump

I though everyone here read the market ticker daily?

proven laws, the crisis in our nation is in large part a failure of the executive branch of government to perform their constitutional responsibilities, with a republican congress legitimizing their negligence. Whether they are doing it to take over the government with the financial elite or out of some misguided philosophy is a matter of debate. What is not debatable is that it must not continue.

Our politicians love to get our votes saying we need some sort of revolution. Not true. In many respects, we need only execute the government that we inherited with prudence and use our GD heads again. It really is not brain surgery. Of course, politicians that perform their responsibilities with integrity are, sadly, "revolutionary" at this time.

This is truly conservative as opposed to dogmatic governing policy, stick with what works and if changes are proposed...find out why, and I mean the real WHY, not any "free market" dogmatic blather. Then make an informed decision from there.

Thanks for the link.

Baldwin Ballot Access ★★
http://www.constitutionparty.com/ba_stats.php

...can't rate or favorite the youtube link, though...

http://www.votenader.org/blog/2008/09/10/statement-to-ron-pa...
http://www.flickr.com/photos/57925480@N00/2660779139/sizes/l/

Bump!