Posted by politicalpartypooper on February 10, 2009

We bailed out banks and “Financial Institutions (along with GM, Chrysler, and Ford) last Fall, to the tune of $350 Billion.  To date, we have very little accounting of that money.

In April of 2007, I first heard of trouble brewing for the Sub-Prime mortgage lenders.  At the time, none of us (my colleagues and I) had any idea how deeply involved the banking system was in all of this.  However, we became aware of it soon thereafter, and I heard  rumors already of a banking bailout in June of 2007, fourteen months before it actually occurred.

I recall a conversation I had with some fellow advisers.  One of my friends mentioned that at some point, because the mortgages behind some bond investments were so toxic, that even some mid-sized banks would need a bailout to maintain their asset to debt ratio, and thus, remain a bank.  You see, there are Federal criteria for such things.

When I heard the rumors of a bailout, I recall telling my colleagues, “I have no problem with bailing out banks, so long as the people behind the bad mortgages are bailed out with them.  Too often, we have seen credit companies and lenders receive aid and subsidies from our government while they tighten credit and squeeze their homeowners for every last penny. ”

One of my friends is a mortgage broker.  He told me, in the summer of 2007, that since 1998, he had not experienced even a single application turndown for a mortgage.  I asked him how it was possible, he answered, “It’s not just possible, it’s as good as Federal policy.”

Looking for someone to blame for this mess?  Go no further than the Federal government.  Lenders themselves claim that it was the movement of the government, in the mid- Nineties, that loosened regulations on CDS and mortgage backed securities, all in an effort to increase home ownership accross the board.

Here we sit.

Tim Geithner has just negotiated another sweet deal for banks and financial institutions, and the rest of the $700 Billion bailout.  Lost in that process are the people being forced by greedy banks to abandon their dreams and their homes through foreclosure.  Who is the ultimate winner in all of this?  The banks who received the bailout money, and the proceeds from the sale of homes they foreclosed upon.  How nice is that?  The losers?  The borrowers, who lost their money, their homes, and their credit ratings.  Oh yeah, the next time they apply for a loan, they’ll be paying much higher interest rates, because the banking system cannot make enough money off of them by getting billions from the government, and also billions from the sale of foreclosed homes.

We have said that Bernie Madoff”s crime was the largest Ponzi scheme in history.  But we have a new record.  It’s the Ponzi scheme the banking system pulled on America, when it pulled the plug on homeowners through foreclosure, selling their  property and keeping the money, AND stealing $700 Billion dollars from taxpayers because they stood to lose a few billion through assholish dumbfuckedness.  And our Federal Government demanded that it needed to be so.

Still love your political party?  They’re the ones who gave the bankers the Ponzi money, without ANY oversight. Your political party threw you under the bus.  If I were you, I’d tell them to go to hell.  Does anyone care that individuals are being kicked out of their homes because Corporate Banks fucked up?  Does anyone care that Banks are being given billions while individuals are becoming homeless?

Tim Geithner wants you to believe that we need to help the banking system so that people will trust it again, and invest their money in it.

Do what you want with your money.  My money isn’t going to the banks.  When I learn of a Ponzi scheme, I don’t do the asinine, and give it even more money.


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