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Thursday, April 23, 2009

Wells Fargo, BoA, Citi Lie to Us with Help From the Fed

Sr. d'Anconia sent me the following infuriating tip:


Meredith Whitney is famous because she was the first to call the downgrade of Citibank's dividend cut long before anyone else could believe the financials were going down. She continues very bearish, to use Wall Street lingo.

Here's Cisco's sage summary:
"Whitney explains part of the banks' big Earnings Miracle: they set up a scheme with the Fed, where the Fed preannounces large purchases of agency debt: "Pssst. We're gonna need a bunch of Fannie/Freddie bonds" and the banksters rush out and frontrun the Fed purchases by buying up all the agency debt they can leverage. Then the auction begins and the banks sell the Fannie Mac paper to the Fed at inflated prices. It's a win-win: the banks make a killing, and the Feds take a bunch of unwanted agency paper off the market while recapitalizing the worst banks in the world. Only the taxpayer loses. I'm not paying for this."

To tie this back to politics: It is farcically ridiculous that our historic president, a Teflon Liar, trumpets his commitment to saving money to the tune of $100 million, while handing over trillions, through the Federal Reserve Bank system, to the criminally credit-impaired biggest and most powerful global banks. It is wickedly wrong that our so-called journalists allow him to get away with pretending to be for hope and change for the little guy while stacking his cabinet and bureaucracy full of ex-Goldman Sachs con-men. And may God reserve a special place in hell for the people who continue to load debt onto future generations and current elderly and foreign buyers of our Treasuries, who think they're getting a safe investment, while pretending to be worried about homelessness and the trouble Joe Six-Pack is having buying his groceries. Do all in your power to hold the feet of any pol who supports the evil transfer of taxpayer dollars to rich and powerful bankers to the political fire.

If you're a conservative who's been reading my posts and thinking, "What does all this financial gobbledygook mean?" my reply is, get busy with your homework. If conservatives want to have any influence in the next two decades, they're going to have to expand their repertoire to include not only decrying the social illnesses we face, but the ability to explain what's happening in the world of finance and how it links back to our cultural demise, and how the government is deeply implicated in the causes of both. Start paying attention to financial and monetary policy above all else, because the numbers are so big that right now, in relative terms, nothing else matters. Study it until you can explain the gist to your neighbors and friends and family, and then hammer away at their thick skulls until they, too, can understand how the Federal Reserve system, Congress through the Community Reinvestment Act and other meddling in the markets, and all the financial regulatory agencies practically conspired to defraud the taxpayers, with the eager help of the greedy banksters.

Francisco d'Anconia advises you, with me: Starve the Beast. Find whatever ways sit comfortably with your conscience to pay as little as possible in taxes in any form. Preferably none, particularly to the Feds. The sooner they can no longer convince anyone to buy debt from us, because the revenue stream has slowed to such a trickle that noone can pretend we're a safe investment anymore, the better. The sooner this perverse Ponzi scheme that we've called capitalism, though it isn't, crashes, so that we can start over with real capitalism, the better.

Starve the Beast, End the Fed.


Anonymous Anonymous said...

Wells Fargo acts like the Mafia,,,the government bailed them out. Is our government the Mafia?

6/25/2009 4:19 PM  

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