The Bernanke Backstop Is the Next Ponzi Mortgage Scam
Never Forget the Bernanke Backstop Scam
So, as a background, we can understand that the Federal Reserve banks are owned by the banks of each region. Because most of the most powerful banks are located in New York, the New York Fed is the most powerful private Fed bank of the 12. Ben Bernanke, who speaks of the Bernanke backstop is appointed by the President of the United States but is not a government employee.
Tim Geithner, treasury secretary, was the president of the New York Fed during the height of the ponzi housing bubble. He knows that getting rid of Fannie and Freddie will not hinder the Bernanke backstop. Geithner is a Fed mole, in a public office. The Fed operates under the Basel accords, and is an international entity, with multinational too big to fail banks included as a part of this cabal.
The Bernanke backstop is a permanent, perpetual guarantee of mortgages by the government, at taxpayer expense. The Bernanke backstop establishes moral hazard, ie., that the banks will write mortgages that are not creditworthy, knowing that there will be a government guarantee if the mortgage fails.
I have written numerous articles about the Fed, but what strikes me as curious is that it is not a question of if we should have easy money, but it is a question of when we will have easy money, that drives the international bankers. The need for easy money is actually assumed, and planned for. The international bankers drool and pine for easy money and for a diminishment of the importance of underwriting standards.
Ben Bernanke made this amazing statement, which presupposes turmoil:
Banks want turmoil. They make money in easy money booms and are protected by government in the turmoil of bust. As Roubini has said, the banks make profits which are private and their losses are put upon the taxpayer, which are socialized. Since the profits are privatized, this is not communism. People who think the banks have had a hard time and are victims of borrowers are totally misreading and misunderstanding the mortgage crisis. In fact, the TBTF banks are bigger than ever and have less competition than ever. People who believe these banks are victims are being deceived by people like John Stossel.``The U.S. government's strong and effective guarantee of the obligations issued under the current government-sponsored enterprise structure must be maintained,'' Bernanke said today in remarks to a conference in Berkeley, California. ``If the GSEs were privatized, it would seem advisable to retain some means of providing government support to the mortgage securitization process during times of turmoil.''
Bernanke, Wells Fargo and the IMF Are United Against Proper Bank Behavior
Ben Bernanke does not want banks to operate properly, with sound underwriting and careful lending standards. And in times of turmoil, the Fed does not want banks helping the people, as in It's a Wonderful Life, but rather wants them only saving their own hides, as in the aftermath of the recent ponzi housing crash. Banks quit lending to business that were credit worthy, and raised interest rates, all the while getting sweet deals at the Fed discount window with which to buy treasury bonds. Even that process, which kept interest rates low, stole from the pockets of investors and senior citizens.
The international financial cabal is getting too powerful, and is swallowing up the resources of everyone else. The national debt has doubled, and we cannot trust central banks that plan easy money lending which is not based upon sound underwriting. Ellen Brown has called for state banks to bypass the international cabal. But even those need to grant loans based upon sound credit policies.
Wells Fargo was indeed the most arrogant of the TBTF banks, in threatening, publicly, to do away with the 30 year mortgage if the bank doesn't get the guarantees it wants. And the IMF has also come out in favor of a backstop of government guarantees even if Fannie and Freddie are abolished.
Also, you wonder if securitization is being pushed for the neocon desire for US world domination. You hear a lot of talk about American Exceptionalism and other views of the preeminence of America. But really, as far as economic growth America is not number one and our military is the threat we hold against the world. This is just immoral on the part of the neocons to do this. We need to live in peace. I don't like the Democrats, but the Republicans want war and turmoil and work with the banks to keep this international bad behavior going. If securitization is being pushed in order to create a belligerent United States let's do away with it! If World War 3 is the aim of American Exceptionalism, we can do without securitization!
The new financial order is controlled by the United States and Europe to be sure. And this order has done great damage to mainstreet, and the neocon hawks play on this anger in order to get support for more wars like the Iraq War. And like George Bush, who was one of them, neocons are not unwilling to stoop to massive lies to promote war profiteering. One wonders how many lies mainstreet is willing to tolerate from the neocons and the ponzi #banksters. I support a new frugality where people stop letting these people control world events by pulling their economic plug through decreased borrowing and strategic default.
We had the world financial cabal give us ponzi lending and ponzi bailouts, and then the Fed takes credit for restoring the economy. That is like a fireman setting a fire and then being hailed as a hero for putting out the fire. Come on Americans, boycott these shenanigans from the #banksters.
It is interesting to surmise about how the next ponzi housing bubble will play out. The banksters want the plan, as we have proven above. So, the question then is, will the American people bite? Will the ponzi last longer than the last one or be very short lived. i would say that greed will be a factor and will cause people to bite and get involved, but i believe that fear will cut the ponzi short. I could be wrong, as a strong economic revival could keep the ponzi going. However, memories are deep concerning the last bubble, and I believe that people will be dumping houses and walking away the moment they get a big heloc or they will try to flip quickly. They know what happened the last time.
Will the banksters have to wait until a whole new generation comes along? Can they afford to wait? Remember, debt growth is profit growth for banksters. The Tea Party says the banksters got a bad deal. Well the big banksters got a great deal, as the biggest banks are richer and more powerful than ever before. They still have a lot of debt on their books, and a downturn in housing will cost them. But they make money speculating with inside information on all sorts of activities, and gasoline is up to scary levels. How much more abuse can mainstreet take so these banks can make easy money?
Now we hear that banks that have even 5 percent skin in the game don't want to make mortgages and are threatening to stop making them. Well, I say, if they can't have a measly 5 percent in the game, let securitization stop and let the 30 year mortgage go away. Go ahead, banksters, we dare you to dry up your income. We can rent, and you can go broke. That is no sweat off our asses!
With regard to commercial real estate, Ranieri on CNBC stated on 2/23/2011 that commercial real estate, CMBS, is now being written with very low underwriting quality again!We use third-party advertising companies to serve ads when you visit our website. These companies may use information (not including your name, address, email address, or telephone number) about your visits to this and other websites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here http://www.google.com/privacy_ads.html
RICO Fraud Should Be Prosecuted. More Proof That the Big Banks Are Not the Victims!
Allstate is suing the big banks for selling them loans filled with lies and failure. It is time to pull out the RICO laws against the banksters for a continuing pattern of lawbreaking and fraud. http://www.zerohedge.com/article/how-allstate-used-sampling-confirm-jpmorganwamu-lied-about-virtually-everything-when-sellingHere is the deal people, the banksters want to skirt punishment for this bubble and then establish another easy money bubble. That is the only reason they want to rekindle securitization (the packaging of mortgages) like the ones that led to the credit crisis and major recession.
They want securitization in order to hide bad loans and pawn them off on investors, but they want the government to guarantee all these loans. If this happens, the government guarantee, I mean, then loans will be written that are crap loans with no responsibility required for the originator of the loan. Why do you think they don't prosecute Angelo Mozilo of Scumtrywide?
Mainstreet will be attacked by easy money and then a crash once more. I don't know if we can take it another time. The fact that so many supposedly informed people believe that the big banks were victims of the borrowers proves how propaganda can influence the gullible. We should know and see by Allstate's lawsuit that this is a lie, that the big banks were not victims. Allstate was the victim, though insurers should be more alert as to how they invest you would think.