From William Greider’s recent article:
“Treasury Secretary Hank Paulson agreed to invest $125 billion in the nine largest banks, including $10 billion for Goldman Sachs, his old firm. But, if you look more closely at Paulson’s transaction, the taxpayers were taken for a ride — a very expensive ride. They paid $125 billion for bank stock that a private investor could purchase for $62.5 billion. That means half of the public’s money was a straight-out gift to Wall Street, for which taxpayers got nothing in return.”
I do believe one can attack the system with impunity and arrogance, but one has to be careful to cover one’s tracks through careful back-stepping and wisely-laidout dead ends. Thank you Edward Abbey and may the Monkey Wrench Gang live on forever in the wisdom of your dreams.
Maybe I have some insight into another angle that I dont think many Americans have looked at. I served for many years as a Legionnaire and was witness to the overthrow of many countries and the all important bankruptcy of the former USSR; by the USA. Let me draw some possible parallels that you might think about when you are contemplating your future here in what we call the “states”. First of all, am I the only one who remembers reading in the Wallstreet Journal the article which featured an interview of a former Russian Spetnetz Colonel who spent close to ten years in Afghanistan? For those of you who dont remember or possibly never had access to this article; in brief the colonel said “what do you ( Americans ) think that you can do in Afghanistan that we couldn’t do in ten years? I know that Americans; my family members included think that the USA is the most powerful and superior fighting force known to modern history. I will grant you that the American armed forces are superior in technology and weaponry, but when it comes down to the basics the American soldier is no different than any others; we are all flesh and blood and contain the same basic DNA. If you remember Ronald Reagan is credited with bankrupting the Russians in that war and setting in motion for what is today known as Russia. Here is my proposition, the USSR fought a ten year war that literally drove them into bankruptcy; period! The USA is now following that exact model as it is not only fighting in Afganistan, but is spending a vast amount of money fighting an additional war in Iraq. Rome went down this same path and what happened to the Roman Empire? We can blame Hank Paulsen and the dim witted George Bush? Americans allowed this to happen by voting them and their counterparts into power. So with that all said and done what do I foresee for the future of the USA? Just look at Russia; they had many years of internal corruption and literal starvation before a strong man ( Putin ) took control. And what did all of the suffering accomplish that the Russian people went through? Not much as Russia is still one of the most corrupt countries in which to live or do business. Maybe Thomas Jefferson was correct in his statement that every country needs a revolution periodically to correct the inadequacies of the government. I know that he used different terminology, but then again to use his words verbatim would walk a fine line in getting one thrown in jail for “in-sighting an insurrection”. I still think this is the best country in which to live in, but maybe we need to start over?
It would seem that the American political establishment, of both major parties, view the American taxpayers as sheep to be sheared.
I have no way of knowing how reliable this source is, however, the piece addresses Catherine’s persistent question: where is the missing money? This article asserts that the Freddie Mac’s pension fund was used by Goldman Sachs for their derivative positions. Given all that’s transpired since this July 2008 article it seems plausible. I’ve posted an excerpt below, and you’ll find the link at the bottom.
__________________________________
(3) Employees and corporate officers of the Federal Home Loan Mortgage Corporation (FHLMC) are under the impression that their pension plan holds about $2.0 billion and is fully funded.
(4) Notwithstanding (3) above, the net worth of the Federal Home Loan Mortgage Corporation is approximately MINUS FIVE BILLION U.S. DOLLARS.
(5) Separately, the Federal National Mortgage Association (FNMA), another publicly traded GSE, which likewise enjoys ‘implicit’ Federal guarantees on any debt instrument it issues…
(6) … has a net worth that is up in the air, but is believed to be positive. (Note: It will be recalled that we have separately pointed out that, for successive fiscal years, the Office of Management and Budget (OMB) has published blank data columns in its annual presentations purporting to show the financial condition of the main GSEs (2).
• The reason for these blank tables is that the GSEs’ finances are in a shambles and have been scammed: see our report dated 26th December 2007).
(7) IN THE AGGREGATE, the total value of GSE loans outstanding which are perceived to be backed by ‘IMPLICIT’ guarantees of the US Government = about $12.5 trillion (see above).
(8) In the context of the sub-prime environment, it is optimistically assumed that at least one in thirty loans will fail. However no-one really knows, since the entire rickety house of cards depends upon avoiding a wholesale collapse of confidence and a run on the banks.
(9) NOW: Regulators normally require monies in pension funds to be deployed in operations that have to be mounted to stabilise any public or private corporation in financial distress. BUT:
• The Federal Home Loan Mortgage Corporation (Freddie Mac) has NOT admitted to any financial problems and has NOT offered its pension plan for use in any financial mechanism or pledge for the purposes of stabilising its financial circumstances (despite the fact that the OMB has been unable to publish financial data for this GSE for many years now).
(10) WHY has Freddie Mac failed to offer its pension plan funds, said to be worth about $2.0 billion (see point (3) above) for this purpose, given that the ‘mainstream’ media has now caught up with the fact that Freddie Mac is in financial difficulties, albeit over seven months behind the curve?
• BECAUSE THE FREDDIE MAC PENSION PLAN FUNDS DO NOT EXIST.
(11) Uh, GOLDMAN SACHS was reportedly Custodian/Manager for the Freddie Mac Pension Plan, when Paulson was Chairman and CEO of Goldman Sachs. THE FREDDIE MAC PENSION PLAN FUNDS WERE USED TO SUPPORT THE DERIVATIVES BUSINESS OF GOLDMAN SACHS.
(12) Refer, please, to a Wall Street Journal article dated 15th July 2008 entitled ‘Paulson drove plan to shore up Fannie Mae, Freddie Mac’, in which you can read all about the fact that…
• ‘Paulson’ wants ‘EXPLICIT’ guarantees on the loan portfolios of all the Government-Sponsored Enterprises, including of course the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal National Mortgage Association (FNMA). WHY?
• ANSWER: To obfuscate and hide this PENSION FUNDS SCANDAL.
http://www.edwardharle.com/news/149_confirmed_two_countries_seeking_u.s._collapse