Mushroom Cloud over Wall Street
By Mike Whitney
"One bank to rule them all;
One bank to bind them..."
" -- -
These are dark times. While you were sleeping the cockroaches
were busy about their work, rummaging through the US
Constitution, and putting the finishing touches on a scheme to
assert absolute power over the nation's financial markets and
the country's economic future. Industry representative Henry
Paulson has submitted legislation to congress that will finally
end the pretense that Bush controls anything more than reading
the lines from a 4' by 6' teleprompter situated just inches from
his lifeless pupils. Paulson is in charge now, and the
coronation is set for sometime early next week. He rose to power
in a stealthily-executed Bankster's Coup in which he, and his
coterie of dodgy friends, declared martial law on the US economy
while elevating himself to supreme leader.
"All Hail Caesar!" The days of the republic are over.
Section 8 of the proposed legislation says it all:
"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
Right; "non-reviewable" supremacy.
Congress, of course, is more than eager to abdicate whatever
little authority they have left. They're infinitely grateful for
their purely ceremonial role, the equivalent of Caligula's
horse, albeit, with considerably less dignity. Has even one
senator spoken out against this madness, which--according to
informal internet polls--is resoundingly rejected by the voters?
Does it concern the members of congress at all, that the present
financial crisis was brought on by the proliferation and sale of
trillions of dollars of mortgage-banked garbage which were
fraudulently represented as Triple A rated bonds by the very
same people who now claim to need unprecedented and dictatorial
powers to fix the problem? Or are they more worried that the
steady torrent of contributions which flows from Wall Street to
congressional campaign coffers will be inconveniently disrupted
if they fail to ratify this latest assault on democratic
governance? The House of Representatives is one big steaming
dungheap that should be leveled and turned into an amusement
park instead of a taxpayer-funded knocking shop. What a pathetic
collection of cowards and scumbags.
Bloomberg News: "
"The Bush administration sought unchecked power from Congress to
buy $700 billion in bad mortgage investments from financial
companies in what would be an unprecedented government intrusion
into the markets. Through his plan, Treasury Secretary Henry
Paulson aims to avert a credit freeze that would bring the
financial system and the world's largest economy to a
standstill. The bill would prevent courts from reviewing actions
taken under its authority.
"He's asking for a huge amount of power,'' said Nouriel Roubini
an economist at New York University. ``He's saying, `Trust me,
I'm going to do it right if you give me absolute control.' This
is not a monarchy." (Bloomberg)
The banksters own this country, always have; only now they've
decided to strip away the curtain and reveal the ghoulish visage
of the puppet-master. It ain't pretty.
Paulson decided that the financial markets needed an emergency
trillion dollar face-lift just weeks before his former business
partners at G-Sax were dragged off to the chopping block. Was
that the reason? Everyone on Wall Street knew that the bulls-eye
had already been ripped from Lehman's bloody back and was about
to be fastened on Goldman's. Now, it looks like they will escape
their day of reckoning due to Paulson's eleventh-hour reprieve.
Nice touch, eh?
From the proposed legislation: LEGISLATIVE PROPOSAL FOR TREASURY
TO PURCHASE MORTGAGE-RELATED ASSETS
"(3) designating financial institutions as financial agents of
the Government, and they shall perform all such reasonable
duties related to this Act as financial agents of the Government
as may be required of them."
Market Ticker's Karl Denninger summed this up best:
"This is the de facto nationalization of the entire banking,
insurance and related financial system..That's right - every
bank and other financial institution in the United States has
just become a de-facto organ of the United States Government, if
Hank Paulson thinks they should be, and he may order them to do
virtually anything that he claims is in furtherance of this
act.....The bill gives Paulson the ability to nationalize
unlimited amount of private debt and force you and your children
to pay for it."
"The claim is that this is intended to 'promote confidence and
stability' in the financial markets.
It will do no such thing. It will instead strike terror into the
hearts of investors worldwide who hold any sort of paper,
whether it be preferred stock, common stock or debt, in any
financial entity that happens to be domiciled in the United
States, never mind the potential impact on Treasury yields and
the United States sovereign credit rating.
I predict that if this passes it will precipitate the mother and
father of all financial panics." (Market Ticker)
Amen. The transformation from a free market to a centralized,
Soviet-style economy run by men whose judgment and credibility
is already greatly in doubt; does not auger well for the markets
or the country. Anyone with a lick of sense would cash in their
chips first thing Monday and look for capital's Elysium Fields
overseas or as far as possible from the circus sideshow now run
by G-Sax ringleader, Colonel Klink.
Paulson's Chicken Little routine might might have soiled a few
senatorial undergarments, but let's hope the American people are
made of sterner stuff and will reject this charade. The
conversation should be shifted from conceding more authority to
hucksters in pin-stripes to indictments for securities fraud.
Even the most economically-challenged nation ought to be able to
afford a few sets of leg-irons and a couple hundred jail cells.
That's all it will take. That, and a couple brisk dunks on the
waterboard. Glub, glub.
Paulson's plan to revive the banking system by buying up
hundreds of billions of dollars of illiquid mortgage-backed
securities (MBS) and other equally poisonous debt-instruments;
ignores the fact these complex bonds have already been "marked
to market" in the recent firesale by Merrill Lynch. Just weeks
ago, Merrill sold $31 billion of these CDOs for roughly $.20 on
the dollar and provided 75 percent of the financing, which means
that the CDOs were really worth approximately $.06 on the
dollar. If this is the settlement that Paulson has in mind, than
the taxpayer will be well served. But this will not recapitalize
the banks balance sheets or mop up the ocean of red ink which is
flooding the financial system. No, Paulson intends to hand out
lavish treats to his banker buddies, while interest rates soar,
pension funds collapse, the housing market crashes, and the
dollar does a last, looping swan-dive into a pool of molten
lava. Thanks, Hank.
Economist and author Henry Liu summarized the current
maneuvering like this: "The Fed is merely trying to inject money
to keep prices not supported by fundamentals from falling. It is
a prescription for hyperinflation. The only way to keep price of
worthless assets high is to lower the value of money. And that
appears to be the Fed unspoken strategy."
Indeed. The Fed and Treasury have decided to backstop the entire
global financial system (foreign banks can access the Fed's
facilities, too!) with paper money which is rapidly losing its
value. Watch the greenback tumble tomorrow in currency trading.
Congress is getting steamrolled and the American people are
getting snookered. Consumer confidence--already at historic
lows--is headed for the wood-chipper feet-first. Something has
got to give.
One minute everything is hunky-dory; the subprime meltdown is
"contained" and "the fundamentals of our economy are
strong".(Paulson) And, less than a week later, congress is
forced to surrender their constitutionally-mandated right to
oversee spending in order to forestall economic Armageddon.
Which is it? Or is the real objective just to keep the country
on an emotional teeter-totter long enough for all state-power to
be subsumed by the Wall Street Politburo?
No one knows what will happen next. We are in uncharted waters.
And no one knows what the political landscape will look like
after the dust settles from this outrageous power grab.
According to Paulson, things are so dire, the entire nation will
be reduced to smoldering rubble and twisted iron. But can we
trust him this time after his long litany of lies?
Isn't it about time to send the cockroaches scuttling back to
their hideouts and bring in the cleaning crew to hose the whole
place down? It sounds like a job for Ralph Nader, a man of
vision and unshakable integrity. Give Ralph a badge and let him
deploy his Raiders to Wall Street armed with bullwhips and
tasers. Let them post a guard in every CEOs and CFOs office and
every boardroom on the Street---and if even one decimal is
accidentally moved to the right or left on the corporate ledger;
clap them in leg-irons and drag them off squealing to
Guantanamo. That's how you clean up Wall Street!
Don't let the prospect of a national crisis trick you into
giving up your freedom, America. The people behind this scam are
the same landsharks and flim-flam men who polluted the global
marketplace with their snake oil and toxic sludge. These are the
fraudsters who manufactured the crisis to begin with. This is
just the latest installment of the Shock Doctrine; engineer a
crisis, and then, steal whatever is left behind. Same sh**,
different day. Be resolute. Don't budge. Our economic
foundations may be crumbling, but or determination is not. This
is our country, not Goldman Sach's. The people who destroyed
America must be held to account. Their time is coming. Justice
"comments" below to read or post comments
Be succinct, constructive and
relevant to the story.
We encourage engaging, diverse and meaningful commentary.
Do not include personal information such as names, addresses,
phone numbers and emails. Comments falling outside our
guidelines – those including personal attacks and profanity –
are not permitted.
See our complete
Policy and use this link
to notify us if you have concerns about a
comment. We’ll promptly
review and remove any inappropriate postings.
Send Page To a Friend
accordance with Title 17 U.S.C. Section 107, this
material is distributed without profit to those
who have expressed a prior interest in receiving
the included information for research and
educational purposes. Information Clearing House
has no affiliation whatsoever with the originator
of this article nor is Information ClearingHouse
endorsed or sponsored by the originator.)