The Largest Swindle in Global Economic History

Discussion in 'Chit Chat' started by SouthAmerica, Sep 24, 2008.

  1. .

    September 24, 2008

    SouthAmerica: It is underway in the United States the largest Swindle in global economic history.

    The United States economy is becoming a case study for the largest economic swindle in world history.

    It is laughable to watch a Republican administration that dismantled many of the regulations that helped create this massive mess in the US financial markets and refused to regulate a derivatives market that went from $ 900 billion dollars to $ 62 trillion dollars a market completely unregulated and that has been flying on automatic-pilot under their watch – a Republican administration that changed the rules on Federal Insured Pension Plans to supply more casino chips to the high rollers in Wall Street to gamble also with the pension money – it is fun to watch the Republican Party setting up the Democratic Party to be the politicians that are going to be blamed for the passage of the Mother Of All Bailouts in World History.

    The Democrats are too stupid to realize that they are being set up to be the fall guy in the future. The Democrats were in control of Congress when this historic Pathetic bailout was passed on a Hurry, a real Hurry – the sky is falling type of environment - and no time to study what was really going on behind the scenes….

    These scoundrels did show their hand when they published the first draft of this $ 700 billion dollars bailout as shown in a front page article published by The New York Times yesterday the article said: “The passage is stunning. “Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or administrative agency,” the original draft of the proposal bill says.

    These scoundrels want to assign unlimited authority to a system that has fail badly and they don’t want any checks and balances attached to this bailout in the name of restoring confidence into the US financial system.

    If Americans are so Dumb as to fall one more time to these scare tactics that the Bush administration has been using all along then Americans and the rest of the global financial system deserves to taken for another ride – only fools would fall for these empty scare tactics

    I understand that common sense has been gone out of the window of the US financial system a long time ago – but it is getting to the point that is becoming laughable and Pathetic how these guys think that a $ 700 billion dollar bailout is going to fix the system when in reality is just going to supply more casino chips for the scoundrels to destroy the entire system even further.

    The scoundrels don’t want to unload only their bad bets on the real estate market into the lap of the US taxpayers – they are lobbying very hard to dump all kinds of toxic waste into the US government garbage dump – the Federal Reserve and US Treasury.

    The scoundrels want to unload a massive amount of losses related to the derivatives market that no one has any idea of how many trillions we are talking about since this market it is unregulated and nobody has a clue how much losses are already in the pipeline related to these off balance sheet financial weapon of mass destruction.

    Americans are not smart enough to connect the dots and realize that by assuming these massive losses today in the trillions of US dollars indirectly they are helping to dismantle in the coming years all the unfunded social programs that we have here in the United States including Social Security, Medicare, Medicaid, the pension system of federal employees, and so on….

    At the end of the day these massive bailouts are fixing nothing for most people in the US economy since real estate still will fall maybe by another 30 or 40 percent (when you take in consideration the exodus that is underway of illegal immigrants – which has been a major force in pushing real estate price values up year after year - and now their impact on real estate prices is working in reverse since they are not only not creating new demand for real estate and a place to live, but they are seller and they are leaving a vacuum behind that has never happened in US history).

    During the year of 2007 it is estimated that 1.2 million illegal immigrants went back to their countries reducing the number of illegal immigrants living in the US from 12.5 million people to about 11.3 million people. During the year of 2008 the exodus has continued and with the deteriorating economic situation in the United States and a real war against illegal immigrants you can bet that this trend will continue for years to come and as a result having a negative on the price a demand for real estate around the United States.

    The unemployment rate in the United States is already a lot higher that the official statistics show – but if Wall Street want to continue placing their bets based on fictitious information they also should pay the price for their stupidity and should eat the losses from bad investments.

    It is obvious that the US GDP and all the buying that has been done on credit in the US economy was based on fictional financial system and a large part of the US GDP is based on Fiction and it will disappear in the future.

    The US government already spent $ 29 billion on Bear Stearns, $ 200 billion on Fannie and Freddie, $ 89 billion on AIG, they extended insurance to money market funds that could cost taxpayers billions and billions of dollars (there is no price tag on that one) and now they are asking for a blank check to be pissed away to the tune of $ 700 billion dollars.

    Let put in some perspective here for people to see the size of this fiasco: If you add all the pieces related to these bailouts we already have $ 1 trillion dollars and with further economic deterioration in the US economy in the near future this number can grow to $ 2 trillion dollars overnight – the price tag to keep the foreign adventures going in Iraq and Afghanistan will cost at least another $ 2 trillion dollars. Just to clean the Us economy of these problems it will cost at least $ 4 trillion dollars to be financed by the Chinese and the Japanese.

    Compare that mess $ 4 trillion dollars in toxic waste with a country such as Brazil with a very clean balance sheet, its energy needs independent of imported foreign oil, a country with vast amount of natural resources, and a GDP around $ 2 trillion dollars

    Basically today Brazil’s GDP (a golden nugget) is only half of the value of the toxic waste buried inside the US economic system.

    Right now they should just provide some emergency money to keep the US economic system afloat until February 2009 when the new Congress takes over and has time to come up with a reasonable bailout plan and at the same time pass the new regulations to control the financial system in the same package.

    Only idiots would pass the black check right now to the tune of $ 700 billion dollars and would expect that the 44,000 lobbyists that infest and corrupts the political system in Washington D.C. would let any regulation to pass in the future other than some silly meaningless regulation that would be a waste of time.

    Americans are so dumb that they might pass this bailout without understanding what the scoundrels sold to them – that would be another signal to the world that the US financial system it is just a very risk casino with very dumb people in charge.

  2. grover


    Seeing this great financial catastrophe makes me glad to be working with ShoreBank promoting their HYSA with 3.50% APY. In addition to these great rates, ShoreBank invests money saved in their accounts into great causes for the environment and for people in need. View some of their stories here: It's nice not to be working for a bank that gave loans they couldn't back up.
  3. Before you start playing the blame game on the republicans you might find it interesting to know that in 1999 Bill Clinton and his administration were the ones that passed the deregulation bill that is still in place that had a stronger negative impact than whatever Bush did in the last 8 years. I say you do a little more research before reciting simple statistics and then making childish statements such as democrats are stupid and republicans are deregulators. Although i do agree that democrats are stupid.
  4. The creation and operation of the Federal Reserve is still the BIGGEST swindle of our history......many more trillions than our current wealth transfer.
  5. You talk about how great brazil is, but why dont you mention that more people have been murdered in brazil between 1979 and 2003 than all the american soldiers killing in WWII, vietnam, IRAQ and the revolutionary war put together! That basically means it was safer to walk the streets where there were wars going on, than walk the streets in brazil. Brazil can sustain itself on its own oil because the citizens are afriad to drive too far from home for fear of being carjacked.

    Brazil has so much money because drug trafficking, money laundering, extortion, murder for hire, fraud (8 out of 10 hackers are from brazil!), human trafficking, corruption, and black marketing are very profitable business that we dont have much of here in the U.S. Its not because brazil has such a great government that its balance sheet is clean, its because when they do catch the criminals, they expropriate their assets which can amass to 100s of millions (sometimes billions) of dollars each time they get someone.

    So yes, brazil has a nice balance sheet, but let me ask you this...would you rather live in a house in the ghetto thats paid for with people playing their stereos loud all night, drinking 40 oz beers right in front of your house (that has security bars on the window for your protection that makes it look like you are living in a jail cell), or a house in a nice safe community thats quiet with a big fat mortgage?

    Call me crazy, but give me the mortgage! I dont care if I got that big ass liability on my balance sheet, i dont wanna live in the ghetto just so i can say I'm debt free!
  6. .
    NeoRio1: … say you do a little more research before reciting simple statistics and then making childish statements…


    September 24, 2008

    SouthAmerica: Here is a childish statement for you….

    Under a Republican administration watch the Republicans refused to regulate the derivatives market that went from $ 900 billion dollars in January 2001 when the Bush administration took power in Washington to the $ 62 trillion dollars derivatives market that we have today and it is completely out of control. This $ 62 trillion dollar monster is completely unregulated and it has been flying on automatic-pilot the last 8 years.

    You need to have a lot balls to blame that unbelievable lack of common sense on the Democratic Party when the Republicans were in charge when this massive financial orgy was going on under the label of innovation.

    And believe it or not the at the end of the day future studies are going to find out that at the core of this massive financial meltdown you are going to find out that this $ 62 trillion dollar unregulated nightmare played a major role and was at the center of the storm, besides the massive sub-prime mess.

  7. .

    September 24, 2008

    SouthAmerica: Reply to peilthetraveler

    Your posting is so silly that it does not deserve any type of reply.

    In Brazil we call what you wrote: besteiras.

    I hope you don’t expect an intelligent reply to all the silly things that you wrote above.

    Basically your posting is an insult to the intelligence of most of the people who participate on this forum.

    Please spare all of us on this forum from that type of silly stuff.

  8. peilthetraveler,
    up to around the early 2000s, in the previous 20 years there had been murdered 600 000 people in Brazil - not traffic accidents or other unprovoked deaths.

    Brazil has an elite - a very strongly saturated corrupt system that runs through all of society. In one large town of a couple of million I frequent, one friend of mine of the local health ministry talked about how with the advent of a new boss on top, their cut went from 40% of the budget to 55% of the budget. That is money being diverted to their group of insiders - personal spending, embezzlement and so on. Unfortunately, my friend was caught in the system of this group - accepting to go on trips with them, financed by this corruption. He regretted, but was looking out for his own skin. At the same time poor children die because of this, and schools, public hospitals are truly miserable.

    I mention this for you to understand how corruption is detrimental to society. Crime in Brazil is out of control, and the military has to provide for election security in Rio de Janeiro.

    The positive trend in all of this however, is how things have improved under president Lula. Corruption and the elite are finally being tackled, and prosperity is being funnelled into Brazilian society - the people have higher wages etc. That means a stronger internal market as well, and this is what gives Brazil a growing integrity of its own instead of being slave to the markets receiving their exports.

    In the US, the elite are controlling politics. US politicians are deeply involved in business projects and have their personal networks strongly embedded with donations and contributions to keeping them in power. The whole political system in the US is constructed around corruption - the flow of money and keeping it that way.

    No doubt the outrage within the US population means that they are starting to wake up. Civilian disobedience and crime will undeniable follow to some extent - although not like the LA riots or similar in my opinion... It is possible that things like the LA riots might happen, and in the current situation - there is little needed to spark such dramatic scenes. That will lead to strong authoritarian rule, that the US political administration have been strengthening manyfold during the last presidency.

    In some respects this meltdown is something that has been accruing for the last 10-20 years - and is in fact the result of the end of the Cold War, with the peace dividend greedily grabbed by the US elite in their corrupt clutches... No doubt. It will be interesting to see if the economic and financial elite of the US can exert sufficient social control to stem the outrage in the population...
  9. wow, thanks for that good news. Maybe this will scare a coupla million more back over the border. See ya!

    During the year of 2007 it is estimated that 1.2 million illegal immigrants went back to their countries reducing the number of illegal immigrants living in the US from 12.5 million people to about 11.3 million people. During the year of 2008 the exodus has continued and with the deteriorating economic situation in the United States and a real war against illegal immigrants you can bet that this trend will continue for years to come and as a result having a negative on the price a demand for real estate around the United States.

    #10     Sep 24, 2008