Fed Made Taxpayers Unwitting Junk-Bond Buyers
Jul 1, 2010
Federal Reserve Chairman Ben S. Bernanke and then-New York Fed President Timothy Geithner told senators on April 3, 2008, that the tens of billions of dollars in “assets” the government agreed to purchase in the rescue of Bear Stearns Cos. were “investment-grade.” They didn’t share everything the Fed knew about the money.
The so-called assets included collateralized debt obligations and mortgage-backed bonds with names like HG-Coll Ltd. 2007-1A that were so distressed, more than $40 million already had been reduced to less than investment-grade by the time the central bankers testified. The government also became the owner of $16 billion of credit-default swaps, and taxpayers wound up guaranteeing high-yield, high-risk junk bonds.
Basically what that last sentence is stating is that Joe and Mary Taxpayer unwittingly became the proud owners of a worthless, putrid pile of financial shit.
Lovely. Gives new meaning to the term "rape and pillage" -- except in this case it was a small group of greedy Americans raping and pillaging their fellow Americans.
And this in turn is what kills me about the Teabaggers.
All of their hateful wrath and vitriol which they blindly aim at immigrants, minorities, liberals, dirty fucking hippies, etc. .. should in reality, be directed at the people who are PRIMARILY responsible for the financial meltdown and their economic misery -- namely the Wall Street grifters who gambled away the nation's savings account and then went crawling hat in hand to the Fed (under Bush at the time) and requested even more money to play with at their financial system black jack tables. The Fed, of course, populated by Wall Street con men themselves, promptly and unquestioningly handed over the people's money to the bankster card sharks and their mini-army of white collar hoodlum flunkies. And a nation's fate was sealed.
So yeah -- call me a cynic if I am of the unrepentant view that the Tea Party movement/philosophy doesn't amount to much more than a load of willfully ignorant, misinformed, hate fueled, John Bircher bullshit -- and with more than just of tinge of old school racism embedded within.
And while I am yet convinced that Obama is not a full-fledged member of this crime cartel that plundered America by virtue of the fact he kept alot of the usual suspects in his administration from the Bush regime, I believe he is at least making an honest effort (as ineffective as it is) to keep the beast on a short leash.
Frankly though, if it were up to me, the only thing I'd like to see around anyone's necks would be some nooses -- preferably hanging from a hastily erected, wooden platform on the steps of The New York Stock Exchange.