Friday, January 15, 2010

Conspiracy to defraud taxpayers out of trillions started with government policy

The Great Bank Robbery Conspiracy Paulson Bernanke Geithner Goldman Sachs Bankers Steal Your Money Bank Hearings Video Summary
(Before Its News) --

New York, NY- How did the United States Government and Wall Street defraud the taxpayer of trillions of dollars under the guise of a financial and banking crisis? What are the ultimate goals of the US Government and how did the financial crisis set the stage for an upcoming repeat stock market crash and deflation followed by a stock market bubble and ultimately strong inflation?

A simple brief summary of the financial and banking crisis explained for the lay person:
1. US Government encourages an unprecedented build up of private sector debt by promoting asset price bubbles in residential and commercial real estate thru artificially low interest rates and reduced Capital Requirements. US Government underwrites loans by Fannie Mae and Freddie Mac.
2. Banking Industry creates complicated security bond investments (CDO) to spread the risk of default on the loans to multiple parties. Essentially the US Government, thru the Wall Street Banks, provided the credit for the loans and then packaged the loans into Bonds to be sold to other institutions sold worldwide such as Hedge Funds, Pension Plans, Governments, and other large Financial Institutions.
3. Banks then created Insurance to protect against a drop in value of these bonds called Credit Default Swaps (CDS). These unregulated Insurance Policies were bought by varies institutions that held the bonds to protect them in case the bonds dropped in value.
4. SEC ignores risks building in system.
5. Ben Bernanke is named Federal Reserve Chairman in October 2005.
6. Hank Paulson resigns from Goldman Sachs and is named US Treasury Secretary in July 2006.
7. New York Fed President Tim Geithner works to lower the capital requirements for banks in 2007.
8. When the eventual drop in prices for residential and commercial real estate occurred the Banks were not exclusively holding the debt associated with the assets. The CDO’s were held by numerous banks, hedge funds, governments and pension funds throughout the financial system.
9. When these bond prices dropped and the holders of the Insurance Policies came to collect on the CDS contracts the losses were so large that the institutions that wrote the CDS insurance policies could not make good on the policy. A primary issuer of this insurance was AIG.
10. This made it possible for the United States Government, thru the Federal Reserve and United States Treasury Department, to step in and pay the parties who would otherwise have lost money. Those parties are major worldwide financial institutions such as Goldman Sachs, Merrill Lynch, UBS AG and Deutsche Bank AG. US taxpayers are now burdened by this debt...MORE...LINK

No comments: