They’re Still At It

[JRSWRITER]

From The Ramparts
Junious Ricardo Stanton


“Analysts who have examined the quarterly profits and government tests say that accounting rule changes and rosy assumptions are making the institutions look healthier than they are. The government probably wants to win time for the banks, keeping them alive as they struggle to earn their way out of the mess, says economist Joseph Stiglitz of Columbia University in New York. The danger is that weak banks will remain reluctant to lend, hobbling President Barack Obama’s efforts to pull the economy out of recession.” Bank Profits From Accounting Rules Masking Looming Loan Losses By Yalman Onaran Bloomberg.com

There is an old saying, “Figures don’t lie but liars are always figuring.” This aptly applies to the banks and the government who are colluding to further dupe US taxpayers into believing the economic situation has improved, that the Bu$h and Obama bailout swindles of taxpayer money are working. They’re not. First of all, the 12.8 trillion the government has pumped into the vortex of banking/financial/auto collapse won’t do anything to resolve the situation. It is much too little way too late. Secondly the bogus “Stress Test” Treasury Secretary Timothy Geithner recently conducted was a publicity stunt, a show to keep the con going. Do you really expect Geithner one of the Wall Street international banker’s good ol’ boys to really do a serious audit or inventory of the banks? He came from the New York Fed, none of the Federal Reserve banks every get audited, food for thought. I hate to disabuse you of your naivete but truth and honesty are not part of the Obama administrations’ agenda. They can’t have the suckers and sheep finding out just how bad the situation really is and how the taxpayers are being ripped off with the aid of Wall Streets’ newest puppet in the White House.

There is an article on Bloomberg.com dated June 8, 2009 that equates the “Stress Test” to the same kind of accounting hocus-pocus Enron employed; and we know what happened with that. The Sub-prime mortgage fraud is just the tip of the iceberg. The mortgage companies, the investment banks, the bond rating companies, the insurance companies, the media and select federal government officials and agencies were all in on the sting, the con to rip us off far worse than they did with the Savings and Loan scandal in the ‘80's. Bogus bookkeeping is the key to the sham. Here’s what Bloomberg.com a site/publication by and for the Wall Street investor crowd has to say about Obama and Geithner’s fraudulent stress tests and bank accounting. “Citigroup’s $1.6 billion in first-quarter profit would vanish if accounting were more stringent, says Martin Weiss of Weiss Research Inc. in Jupiter, Florida. ‘The big banks’ profits were totally bogus,’ says Weiss, whose 38-year-old firm rates financial companies. ‘The new accounting rules, the stress tests: They’re all part of a major effort to put lipstick on a pig.’ Further deterioration of loans will eventually force banks to recognize losses that their bookkeeping lets them ignore for now, says David Sherman, an accounting professor at Northeastern University in Boston. Janet Tavakoli, president of Tavakoli Structured Finance Inc. in Chicago, says the government stress scenarios underestimate how bad the economy may get.” Bloomberg.com

Think of the Bloomberg article as a head’s up to the investor class to warn them not to fall for the okey-doke the Obama administration and corporate media are putting out. They are telling their peeps to be cool until they can steal more money to revive an insolvent banking industry. This is the real deal, “The capitalist cabal that's seized control of the political and economic systems in the United States suffers under the totally insane delusion that it can loot as much money from worker-taxpayers as it wants--and still come out with a viable society. The cabal delusively believes that while millions of workers are being laid off, denied welfare, their tax money stolen by wealthy looters, their homes fore-closed because of criminal subprime mortgages, and their very lives threatened with extinction they will continue to tolerate such abuse indefinitely.” Capitalist Genocide Capitalist Genocide

To make matters worse the Sub-Prime loans are just one aspect of the global crisis. While they form the foundation of the collapse, it’s the trillions of dollars in derivatives and credit default swaps based on the dodgy mortgage, consumer, auto and commercial loans that have defaulted or soon will that are sucking the money out of the banks and insurance companies coffers rendering them insolvent. The financial system is bankrupt. The banks have no money to lend which in turn is undermining the real economy because farmers, entrepreneurs and businesses can’t get loans to keep their businesses afloat, buy inventory or get lines of credit. That’s why we are in a protracted recession (depression). That’s why unemployment is off the hook, mortgage defaults and homelessness are rising and will get worse before it gets any better.

The bailouts won’t work because the defaults total more than the Gross Domestic Product of the whole US economy ! We are literally drowning in red ink and insolvency. The Fed can’t print enough money to bail us out. If they do, the US will experience Weimar or Zimbabwe like hyper-inflation, our dollars will be totally worthless. So the banksters’ scheme is to steal enough taxpayer money and borrow enough from the Chinese to forestall an immediate collapse. “Capitalists have added a new fascist twist to contemporary capitalism: profits are private, losses are public. They'll continue to dole out worker-taxpayer money to failed financial institutions for as long as possible, rather than admit that the whole capitalist superstructure has collapsed. If capitalism's breakdown becomes so overwhelming that they can no longer print enough money to save all the upcoming financial institution failures, they'll orchestrate a general collapse in which they can then buy failed businesses for pennies on the dollar and force workers into deeper destitution.” Economic Collapse Economic Collapse

This country is in deep doo doo. Don’t believe the hype about the economy turning the corner. It’s all a lie designed to keep us docile and content as they steal enough of our money with the help of Obama and Co. to keep the system from imploding before our eyes.