Thursday, July 1, 2010

Bernanke and Geithner Dupe The U.S. Taxpayers For Billions

Read this story from Bloomberg and then try to tell me, minimally, that Bernanke and Geithner should not be immediately fired and put under criminal fraud investigation: 
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.
Bernanke and the Fed have the best financial data-gathering resources in the world.  Anyone who thinks that Bernanke was not aware of exactly how distressed the 10's of billions of assets were that he unloaded onto the Taxpayer balance is either hopelessly naive, hopelessly stupid - or both: 
“The Federal Reserve was not straightforward with the American people regarding the risks they were taking with taxpayer money, despite my efforts to obtain such clarity at the time,” U.S. Senator Richard Shelby of Alabama, the Senate Banking Committee’s top Republican, told Bloomberg News. “It is apparent that the Fed withheld from the Congress and the public material information about the condition of these securities.”
Just so everyone reading this is aware of the truth, the Fed has another $1.5 trillion in what will end up being largely worthless mortgage assets that were purchased under the guise of "quantitative easing."  Most people are not aware that Geither, as Treasury Secretary, agreed to guarantee that garbage on behalf of the taxpayer.

I knew when I watched the bank rescue horror show unfold that the taxpayers were going to end up ultimately with, likely, a few trillion in worthless assets.  Bernanke knew it too.  Geithner?  Hard to say.  Geithner reminds me of the obedient puppy dog who will do what it's told for a treat. 

Here's the link to the entire article:  Bernanke Is A Criminal.  If this news does not fire up the American public to start taking some action to end the looting by the banking elite of this country, then we deserve to end up with what we get when this saga ends in the destruction of our system.

Don't take it from me, take it from long-time Wall Street veteran Howard Davidowitz:  The Whole Thing Is A Fraud

1 comment:

  1. Too bad it's gonna take an absolutely catastrophic economic fallout on main street before Joe Blow starts asking any questions. Cuz let's face it-- the majority of The People just don't give a damn. They're too busy standing in line for iphones or looking at web porn.