Folks,

there is a great deal of blame to go around to both political parties.  The bottom line is that when one party runs the Congress, it's incumbent on that party to at least try to solve problems before they snowball into huge crises. They may be stopped by an obstructionist opposition party.  But they should at least try.

In this case, when the  Republicans controlled Congress, they did absolutely nothing to discourage the explosion of complex financial deals in the financial sector, deals which depended on endlessly rising real estate prices.  If anything, the Republicans encouraged them as some "triumph of the free market."  Hence the passage of the Commodity Futures Modernization Act, which gutted Federal oversight of default subprime swap derivatives, whose abuses led to the collapse of AIG this past week.  

And when the Democrats took over Congress, they too let the good times roll without second thoughts.

This is entirely human.  When everyone is having fun at a wild party, no one wants to stick his neck out and be the party-pooper saying that folks have indulged too much and it's time to go home.

..Last Call!...

"America isn't the problem...America is the solution." ~ Rush Limbaugh

Sen. Dodd believes our economy will recover if and only if we eradicate all the "toxic instruments that exist in these [financial] institutions." One would hope Democrat Barack Obama would agree with Dodd, especially as Democrats are viewed by Americans as the Party most committed to addressing and ameliorating financial crises.

But Obama cannot confront this crisis in the manner Dodd desires, for his National Campaign Finance Chairperson, Penny Pritzker, is largely responsible for the creation and lending of the "toxic instruments" Chris Dodd decries as responsible for our current economic woes.

Beholden to Penny Pritzker as well as to Freddie Mac and Fannie Mae, Barack Obama is essentially one of those "toxic instruments" we must shed if we are to recover from the mortgage and sub-prime lending crisis.

Danny Schechter, Leftist media critic and author of Plunder: Investigating Our Economic Calamity and the ‘Sub Prime Scandal,’ offers a history of the sub prime mortgage. I quote one of the reviews of his magisterial text:

When it began, "subprime lending" wasn’t a term in common usage, let alone understood outside financial circles. One of its late 1990s originators was Obama campaign finance chairperson Penny Pritzker when she served on the Board of the failed family-owned Hinsdale, IL Superior Bank. It cost the FDIC $700 million and depositors another $65 million, while Pritzker made millions on predatory lending now called "subprime" mortgage schemes. One definition is as follows: "the practice of making loans to borrowers who do not qualify for the best market interest rates because of their deficient credit history." Another in the recent environment was to force-feed them to the largest number of homebuying prospects possible.

According to the short history Schecter’s recounts, it is Penny Pritzker who invented the "toxic" financial instrument that has precipitated our current financial crisis. The doyenne of predatory lending, Penny Pritzker is just another Jim Johnson and Frank Raines: both the cause and the symptom of all that is wrong on Wall Street, Penny Pritzker and her position of power on the Obama campaign raises serious doubts about Obama’s ability to reform the institutions responsible for our current economic doldrums.

Pritzker’s involvement in this crisis is not limited to the invention of the sub prime mortgage instrument; she is also largely responsible for the current financial crash. I quote Dennis Bernstein, who cites Timothy Anderson, a finance expert who relentlessly pursued the late Republican Henry Hyde for the latter’s entanglements in the failure of Clyde Federal Saving & Loan:

Though Superior Bank collapsed years before the current sub-prime turmoil that is rocking the world’s financial markets – and pushing those millions of homeowners toward foreclosure – some banking experts say the Pritzkers and Superior hold a special place in the history of the sub-prime fiasco.

"The [sub-prime] financial engineering that created the Wall Street meltdown was developed by the Pritzkers and Ernst and Young, working with Merrill Lynch to sell bonds securitized by sub-prime mortgages," Timothy J. Anderson, a whistleblower on financial and bank fraud, told me in an interview.
"The sub-prime mortgages," Anderson said, "were provided to Merrill Lynch, by a nation-wide Pritzker origination system, using Superior as the cash cow, with many millions in FDIC insured deposits. Superior’s owners were to sub-prime lending, what Michael Milken was to junk bonds."

In other words, if you traced today’s sub-prime crisis back to its origins, you would come upon the role of the Pritzkers and Superior Bank of Chicago.

It all stems from the questionable practices of Penny Pritzker and the Superior Bank of Chicago. Prtizker, by the way, is a major bundler for the Obama campaign. Indeed, the scion of one of Chicago’s wealthiest families has raised between $200,000 and $500,000 for Barack Obama’s Presidential bid. Her family also donated over $40,000 to Obama’s 2004 Senate campaign. Now wonder why Obama is opposed to interest rate freezes and a moratorium on sub prime mortgages: most of his campaign cash is from those who have shamelessly profited from our current economic collapse.

Democrats are aware of this problem, and a few are not very pleased. One Democratic member of the House uttered the following when interviewed by a reporter for the conservative American Spectator on 8 Sept 2008:

"How can Obama go out with a straight face and say it was Republicans who made this mess, when it is his key advisers who ran the agencies that made the big mess what it is?" says a Democrat House member who supported Sen. Hillary Rodham Clinton. "It’s his people who are responsible for what may well be the single largest government bailout in history. And every single one of them made millions off the collapse that are lining Obama’s campaign coffers. If the McCain campaign lets this one go, they deserve to lose."

Hopefully the McCain campaign will not ignore this egregious conflict of interest of Barack Obama. And hopefully the Obama campaign will fire and denounce Penny Pritzker for creating the current economic crisis on Wall Street. But I doubt Obama will, for Obama is the recipient of cash from many who are the beneficiaries of the sub prime mortgage scandal: he accepted $1,180,103 from the top issuers of subprime loans during the primaries. And here are the names of a few of Obama’s bundlers who earn their profits in the unscrupulous sub prime loaning industry:

Louis Susman, Michael Froman and J. Michael Schell of Citigroup; Steve Koch of Credit Suisse; Bruce Hayman, David Heller, Eric Schwartz, and Todd Williams of Goldman Sachs; Mark Gilbert, Christine Forester, John Rhea, Nadja Fidelia, and Theodore Janulis of Lehman; and Robert Wolf of UBS Americas.

Beholden to the interests responsible for creating the sub prime mortgage crisis that has rippled across our country and across the world, Obama cannot eliminate those who created the "toxic instruments" Democrat Chris Dodd decries, for he is too dependent on their largesse.

Will Obama return the donations and bundled cash he received from the subprime industry? Will he fire and denounce Penny Pritzker? Or will he simply ignore his complicity with the unscrupulous sub prime mortgage industry and simply give us more "okie doke," "bamboozling" and "hoodwinking?" Even if he does denounce the industry that has financially sustained his campaign, it will be too little, too late: the economy has already collapsed; the foreclosure crisis has already destroyed communities; and families are on the streets.

Barack "Sub Prime" Obama: unable to reform the industries responsible for our current economic crisis, he is anything but ready for prime time. Indeed, Obama is and will remain "sub prime."

This is beyond Jimmy Carter and if people are interested in the current intricacies and the fix of it one can read below.

I realize I answered NB's question this morning on the narrow of should Congress pass the bail out as that is what the question was. It requires more intricate answers though and solutions beyond what is being addressed.

God bless

http://lamecherry.bl...

No New Deal, No Obama Appeal & No Old World Steal

The
largest problem the United States faces is not Barack Obama, the
financiers who back him stoking this financial mess to install Mr.
Obama, but it is in the fact of the anarchist cancer of too many
Americans self hating themselves and ripping apart everything American
which does not fit their narrow definition of their own state of
perfection.

What America is facing currently is the second
market manipulation or attack aimed at undoing the "fixes" the US
Treasury has been installing.
Monday saw the markets rise and huge sell offs for profits by the financiers leaving once again the poor people holding the bag.
Money
in stocks just does not appear. When it goes up it costs someone
somewhere when sold for a profit and when they go down it bankrupts the
holder.

For what is currently happening on Wall Street and their
driving crude prices up, this has to be coming from the Rothschilds in
Europe who have a massive bankroll.

As they do not spend their
own money ever, this is serious as they are spending their own money
now as in assets to continue this attack upon the United States.

There
is only one cash reserve left in untapped in off currency resources. If
these financiers succeed in bankrupting the central banks of the world
which plugged this gap, they will succeed in taking the top of the
American western economy.

I have posted on how to fix this and I
sincerely believe that this almost trillion Congress is playing with to
Wall Street should instead be infused to homeowners to build disaster
shelters. This will spread the currency to many hands who will then
create an economic recycling of funds inside America where the cartels
can not get at the money.
I will detail this as follows.

To
deal with Wall Street debt, I refer to my original solution in what the
Fed is attempting in cutting out the debt, placing it in receivership
bonds which will be paid off at a nominal not taxable rate by the
parent corporations over the years with economic protection in no
hedging, derivatives or selling the debt.
They sincerely mean to
break the economy in a real 9 11 attack it appears. I do not know if
the Yankee capitalists are prepared for this as what is occurring now
is exposing they do not have the funds to fight this current onslaught.
I
find it difficult to believe the capitalists would be causing this
upheaval as John McCain is their man and this only assists Obama and
the Clintons.

What is occurring is not going to affect people
who have their bills and homes paid for, but it will affect US ability
to project economic power. If the US can not project economic power,
then some other nation state will project that power. The only group
who has that kind of dominating economic power are the central
Europeans.
They have been leveraging for this position and now are
very close to achieving it in supplanting France and the British by now
harnessing the old German order of economic might, with the Italian
Babylonian system fused by the massive Greek shipping. These people
have the finance to supplant America in raw currency and it was these
people screaming about American fixes which were hurting their efforts
at supplanting America.

Oil prices were tanking, so we are to
believe that all that money suddenly was dumped by investors into oil
futures on the last day in this revenue cycle to buy a falling product.
That
does not make any sense and it only reveals that what has been
occurring is the Europeans behind this have opened the flood gates in
electronic transfers from global stock markets pouring into oil futures
which is fully intended to be the throttle on the western economies.

France,
Germany, and Great Britain along with the United States markets are all
under attack and recoiling under this manipulation.
The definition
must be narrowed though in this is as"Europeans" in the sense or
"Americans", because the financial captors of this are instead a
banking lineage of a central west Asian people in the Ashkenaz who are
hiding in "Jewish" faith, but instead are secularists.
These
Ashkenaz elites are not practicing Jews of faith, so do not lump this
into Jewish or Judean peoples. These are secularists whose tool is
money and religion is the false light.

This is serious as this
group headed by the Rothschilds are using their money and they never
use their money. I realize that is repeated, but it needs repeating.
This is a direct attack upon the west to cripple the entire economic
power of the American led west in order to place into power the central
European empire rising from the unholy Roman Empire dead.
In this
mix, it is uninformed to blame this on the Rockefeller group. They are
Ashkenaz, but have been slapped around a great deal by the European
heirarchy over Bill Clinton's selling uranium the Europeans considered
as their property.
Bill Clinton is giddy though as he has something
in the works in bringing down Barack Obama in order to reinstate Mrs.
Clinton who if one notices is MIA not getting her fingers dirty in this
monetary mess so as to arise to the occasion as Barack Obama implodes.

The
American capitalists had this election sanctioned by their group to
defeat Obama. They had dropped oil in their operational capacity in
price, but now have to contend with the Rothschilds spiking prices as
an impressive slash at the west's jugglar.
This is economic warfare of all the stakes on the table.

As
stated, the Bush Administration knew this hit was coming and had these
stop gaps in place which the Rockefellers bit into. They had this $700
billion plan ready anticipating this 9 11 style hit now taking place
which is intended to offset the massive hemorrhage which was created
for this very purpose.
This continued attack on America is facing
trillions of off the books European funds collected. This is a woven
tumor into every aspect of corporate stocks to bonds. They dump
billions out of Wall Street due to no short selling (making money on
losses) and pump those funds into oil which strikes at the US economy,
because as these Europeans spike oil, that same oil can be sold short
as it falls creating the Ashkenaz financiers a cash flow of debt out of
the west to be utilized against the west.
This is the ultimate shell game.

The
last situation America needs now is dumping $700 billion into the
bottomless pit of debt of Wall Street, equally it does not in the least
need another communist black hole of welfare in Franklin Roosevelt's
New Deal.
If the money goes to Wall Street it will disappear into
the pockets of the elite while vanishing into debt. If the money goes
into communistic New Deal policies the money will disappear into the
hands of the many liquidity showing up as Walmart snacks flowing money
out of America and into China.

I address the New Deal for those
who do not know of this FDR program which had WPA, the Works Progress
Administration which was termed by Americans watching the money handout
as We Poke Along, as it was nothing but handing out money to people
holding shovels not accomplishing a thing.
Most of FDR's programs
were struck down by the Supreme Court. FDR's National Recovery
Administration was as Hughey Long termed fascism which was nothing more
than corporate planning of the economy.
Want to know what is the
genesis of the great debt failures in America? It is FDR's Social
Security, Federal Housing Administration etc... which created the huge
lump of debt now being exploited as America has no cash reserves.

FDR
did have one good program in the Tennessee Valley Authority or TVA.
This program went into a wilderness poverty area, built hydro electric
dams bringing civilization to the destitute and jobs that uplifted an
absolute barren area.
There is nothing wrong with investing in
America where it increases the quality of life for numbers of Americans
and increases their ability to purchase products from other Americans
thereby creating a self flowing continuous economy.

It is this
which requires the 700 billion dollars and not Wall Street. I laid out
a plan in taking "global warming" billions being wasted on the elite
scientific few who are shills for the European order behind this
current attack that that money should be taken and granted to United
States homeowners to give real value to their homes in building
survival shelters and stocking them.

It is this which I again
state is the answer to what is bogging down America now. It certainly
is better than FDR's world war which kicked the economy to grow again
and is what ended the Great Depression as FDR's deliberate policies
kept the economic situation stagnant by his policies.
Call it
Stockholm Syndrome for an entire American people so ravaged that they
kept voting for this communist Democrat who was enslaving them and
implementing the corporate enslavement of America.

Simply put
the solution is Congress votes to grant each American homeowner $40,000
to build, stock and supply survival shelters or national security with
the caveat that all items must be American manufactured or of American
origin, including firearms and ammunition.
This construction will
employ numbers of local people all across America. The stocking of food
assists the agriculture economy. The appliances assist all
manufacturers in America who employ vast numbers of Americans in
manufacturing, vendors etc...

This will recycle money 10 times
over and in taxes repay this $700 billion to the government eventually
in the $7 trillion dollar area.

This is how one solves the economic problem of Americans.

As
for the massive derivative debt, just like credit card debt can not be
fled from by citizens, the government must place these debts into a
cordoned fund which is sold to the public where the corporations will
be required to pay this debt off at a reasonable rate where investors
in that promissory debt will be rewarded in not being taxed on this for
their retirement.

This plan costs the United States not one
cent. It generates taxes to fund the government and it stops the
derivative bubble in placing the debt back onto the scam artists who
created it and requires them to pay it.
The bonus, real American
citizens obtain tax free retirement funds to supplement the
impoverished Social Security system which amounts to making the elderly
exist in poverty misery until they die.

For those who speak of
returning the Federal Reserve to the control of the United States
currency as being a real National Bank controlled by the US Treasury
for the US benefit, this is a wonderful idea. But the reason the Fed
was created and is run by the same bankers now attacking the United
States is that it is a siphoning system for the Ashkenaz to be paid a
handling fee for every dollar produced.
Would you like to have a
monopoly where you get paid a percentage of every dollar printed? Sure
you would, but do not think for a second they are going to give up this
monopoly. One of the stated reasons John Kennedy was eliminated was his
second currency of Silver Certificates he created which was competition
to the Rothschild Rockefeller group.

If one wants this solved,
one uses Alexander Hamilton's original mandate of making these banks
under charter for 10 years to be renewed by Congress by majority vote
and balanced by the President. If a mess such as this exists, the
cartel looses it's monopoly with the Justice Department prosecuting the
said fraud.
This way the cartel works for the American people and
the moment they know they are going to loose their monopoly and it will
go into a competitors hands the problems will disappear as these
cartels will be operating this for the benefit of all Americans as
their satisfaction decides in their citizen prosperity who rules the
Fed.

This is not that difficult to solve and while this was
designed for Barack Obama and now seems a hint of a chance to install
Mrs. Clinton in the fallout, there is a correct policy as stated above
to fix this which will benefit the free peoples of the west.

It
is vital that Gov. Palin succeed as one notes that oil is the weapon
this European faction with their American brokers are using as a siphon
on the west. Produce American oil, produce survival shelters where the
money is recycling in America and there is not any way the cartels can
get their hands on the currency and they will loose all leverage in
inflicting injury upon Americans.

This is the simple not cost
anything plan which Congress should be voting on. I realize the Bush
Administration is fighting an economic war by another faction and it is
rewarding American interests at taxpayer's expense, but a better
solution is available in the above plan.

agtG 321

IACET ARTORIVS REX QVONDAM REXQVE FVTVRVS

Take a look at this post from 2000 that shows exactly how this all got started with the CRA...

http://www.city-jour...