Gory details of The Greatest Robbery of All Time


Richard Moore

The plan would raise the ceiling on the national debt and spend as much as
the combined annual budgets of the Departments of Defense, Education and
Health and Human Services. Paulson is asking for the power to hire asset
managers and award contracts to private companies. Most provisions of the
proposal expire after two years from the date of enactment.

These are the foxes who are guarding the chicken coop, the technocrats of the banking elite, the money masters who have orchestrated the destruction of the American economy so as to benefit themselves:

Begin forwarded message:

From: “Don Nordin” <•••@••.•••>
Date: September 22, 2008 12:24:14 AM GMT+01:00
To: “Don Nordin” <•••@••.•••>
From what I understand, this unprecedented bailout of the financial sector
is not a solution.  It merely postpones the inevitable failure of the U.S.
financial system and simultaneously increases the debt of the U.S. taxpayer,
a debt which it will never be able to repay.  It guarantees that common and
private assets of the U.S. itself will further be ‘auctioned off’, in other
words given away to the Money Masters in return for its ‘favour’ of bailing
out that financial sector with its fiat money created out of nothing and
backed by nothing.  In order to pay off this bailout made by the private
Federal Reserve, social services will be cut, pensions robbed, etc., which
will further push the U.S. taxpayer into slavish serfdom.
Treasury Seeks Authority to Buy $700 Billion Assets (Update1)
By Alison Fitzgerald and John Brinsley
 Sept. 20 (Bloomberg) — The Bush administration asked Congress for
unchecked power to buy $700 billion in bad mortgage investments from U.S.
financial companies in what would be an unprecedented government intrusion
into the markets.
The plan, designed by Treasury Secretary Henry Paulson, is aimed at averting
a credit freeze that would bring the financial system and economic growth to
a standstill. The bill would bar courts from reviewing actions taken under
its authority.
“It sounds like Paulson is asking to be a financial dictator, for a limited
period of time,” said historian John Steele Gordon, author of “Hamilton’s
Blessing,” a chronicle of the national debt. “This is a much-needed
declaration of power for the Treasury secretary. We can’t wait until the
next administration in January.”
As congressional aides and officials scrutinized the proposal, the Treasury
late today clarified the types of assets it would purchase. Paulson would
have authority to buy home loans, mortgage-backed securities, commercial
mortgage-related assets and, after consultation with the Federal Reserve
chairman, “other assets, as deemed necessary to effectively stabilize
financial markets,” the Treasury said in a statement.
The Treasury would also have discretion, after discussions with the Fed, to
make non-U.S. financial institutions eligible under the program.
Bigger Than Pentagon
The plan would raise the ceiling on the national debt and spend as much as
the combined annual budgets of the Departments of Defense, Education and
Health and Human Services. Paulson is asking for the power to hire asset
managers and award contracts to private companies. Most provisions of the
proposal expire after two years from the date of enactment.
A failure by the government to support the U.S. financial system could lead
to “a depression,” Senator Charles Schumer told reporters in New York.
“To do nothing is to risk the kind of economic downturn this country hasn’t
seen in 60 years.”
The Treasury is seeking authority to step in as buyer of last resort for
mortgage-linked assets that few other financial institutions in the world
want to buy, following government takeovers of mortgage giants Fannie Mae
and Freddie Mac and insurer American International Group Inc.
“Democrats will work with the administration to ensure that our response to
events in the financial markets is swift,” House Speaker Nancy Pelosi said
in a statement.
Fast Track
The majority party will seek to reduce mortgage foreclosures and create
“fast-track authority” for an overhaul of financial regulation, Pelosi
said. Democrats will ensure “the government is accountable to the taxpayers
in any future actions under this broad grant of authority, implementing
strong oversight mechanisms.”
The proposal will include curbs on executive pay for the companies whose
assets the government will be buying, Steve Adamske, a spokesman for
Representative Barney Frank, said today in an interview.
Democrats also will include a plan to stem foreclosures, which may involve
tapping the loan-modification abilities of the Federal Housing
Administration, the Federal Deposit Insurance Corp., and Freddie Mac and
Fannie Mae, Adamske said. Frank, a Democrat from Massachusetts, is chairman
of the House Financial Services Committee.
“The consequences of inaction could be catastrophic,” Senate Majority
Leader Harry Reid said in a statement.
`Serious Issues’
“While the Bush proposal raises some serious issues, we need to resolve
them quickly,” he said. “I am confident that, working together, we will.”
House minority leader John Boehner, an Ohio Republican, said today he is
reviewing the proposal but didn’t say whether he was inclined to support it.
“The American people are furious that we’re in this situation, and so am
I,” Boehner said in a statement. “We need to do everything possible to
protect the taxpayers from the consequences of a broken Washington.”
Congress, which may pass legislation as soon as Friday, needs to “make sure
there are protections built in for taxpayers,” said Schumer, a New York
Democrat on the banking committee. Lawmakers should ensure “taxpayers who
gave the money will be put ahead of the stockholders, bondholders and
Paulson is seeking an expansion of federal influence over markets that
hasn’t been seen since the Great Depression, said Charles Geisst, author of
“100 Years of Wall Street” and a finance professor at Manhattan College in
New York.
Hoover Era
Geisst likened the plan to the Reconstruction Finance Corp., which was
chartered by Herbert Hoover in 1932 with the goal of boosting economic
activity by lending money after credit markets seized up.
President George W. Bush said he called leaders in both houses of Congress
and “found a common understanding of how severe the problem is and how
necessary it is to get something done quickly.”
“This is going to be a big package because it’s a big problem,” Bush said
following a meeting with Colombian President Alvaro Uribe at the White
House. “We need to get this done quickly, and the cleaner the better.”
Democratic presidential nominee Barack Obama said in a radio address that he
“fully supports” Paulson and Fed Chairman Ben S. Bernanke’s efforts to
stabilize the financial system. The plan, however, should benefit both main
street and Wall Street, he said.
Republican Presidential nominee John McCain “looks forward” to reviewing
the proposal while focusing at least in part on “minimizing the burden on
the taxpayer,” said Jill Hazelbaker, communications director for the McCain
Ban Legal Challenges
The ban on legal challenges of actions by Treasury is “distasteful, it’s
unfortunate and it’s bad precedent, but this is an emergency and you have to
act,” said Jerry Markham, a law professor at Florida State University and
author of “A Financial History of the United States.”
“What you don’t want happen is to have lawsuits that will slow things down
and cause problems,” he said.
The proposal would raise the nation’s debt ceiling to $11.315 trillion from
$10.615 trillion and require the Treasury secretary to report back to
Congress three months after Treasury first uses its new powers, and then
semiannually after that.
Paulson would gain discretion to act as he “deems necessary” to hire
people, enter into contracts and issue regulations related to a revival of
U.S. mortgage finance, according to a three-page proposal. The Treasury
would “take into consideration” protecting taxpayers and promoting market
Hiring Authority
The Treasury plans to hire managers to purchase the assets through so-called
reverse auctions, seeking the lowest prices, a person briefed on the
proposal said yesterday. The document specifies that Treasury may buy only
assets from U.S.-based financial institutions issued or originated on or
before Sept. 17.
The House will pass legislation to implement the plan by the end of next
week, and the Senate will act soon after, Frank said yesterday in an
interview on Bloomberg Television’s “Political Capital with Al Hunt.”
Bush today said he’s unconcerned that the price tag on the package may seem
“I’m sure there are some of my friends out there that are saying, I thought
this guy was a market guy, what happened to him,” the president said. “My
first instinct was to let the market work, until I realized, while being
briefed by the experts, how significant this problem became.”
The Bush administration seeks “dictatorial power unreviewable by the third
branch of government, the courts, to try to resolve the crisis,” said Frank
Razzano, a former assistant chief trial attorney at the Securities and
Exchange Commission now at Pepper Hamilton LLP in Washington. “We are
taking a huge leap of faith.”
To contact the reporter on this story: Alison Fitzgerald in Washingtont ;
John Brinsley in Washington at •••@••.•••
Last Updated: September 20, 2008 21:14 EDT