NOTE: I received the post below via email:
Here is a letter that I wrote to my local Congressman's office. WHo cares about risk when Obama and Bush hands them the keys to my children's future. They are all financial pedophiles for enslaving America's youth to finance their bad bets.
On Mar 21, 2009, at 5:19 PM, Charles McDermott wrote:
Well the Goldman plan seems to be going well.
Everyone is distracted with the AIG bonuses while Goldman walked away with ~$20 Billion++ in cold hard taxpayer cash via their AIG portal (which is run by a Goldman Board member)1,2,6.
They have effectively used police powers of the State to financially enslave my children for the rest of their life.
Now that Goldman has passed out my family money as "loans" to their employees they can "invest" in their own distressed real estate assets that are guaranteed by the tax payers, 1. You see, now that they got the cash they can overpay (with my money) for their own assets (no write down) with no risk (Geithner has guaranteed their losses) - and all this was done in broad daylight with no guilt according their CFO (see below for the comment from the arrogant bastard, 2).
Though I am a very cynical person, the obscene crimes that are being perpetrated have exceeded my most wildest expectations.
The process: Billionaires (e.g., Buffet) made really bad bets in the bubble days with their money. So when things went south it was time to enact a plan to get themselves a "win-win" because losing a pension or equity values in 401k accounts are for little people, I mean losers.
First bribe politicians with nominal $ (AIG got a 10,000% return on the bonuses alone), get seats of state power (NY Fed- Goldman Economist, Chief of Staff for Treasury - Goldman Lobbyist, Obama Chief Economic advisor - Buffet - major preferred Goldman shareholder, TARP author - Goldman execs and former CEO, AIG - CEO a goldman director, TARP runner deal team Goldman, etc.). Then get useless idiots like Bernake to design and enrichment apparatus backed by state police powers to steal from the taxpayers and to steer government business, cash, and commissions to their own companies and personal bank accounts.
The Goldman Sachs Plan: There are others (Fannie, C, BAC, JPM, etc.) but Goldman is the most blatant example of criminal behavior.
1. Convert from a reckless hedge fund to a regular bank so they can take $ billions in tax dollars via bailouts with no dilution (Note that just before Obama came into office Buffet took a huge preferred stake with a huge dividend in GS while taxpayers got pathetic terms for their "equity" stake).
2. Buy your way to the top of all governmental and shadow finance cash flow checkpoints.
3. Have taxpayers cover 100% of your bad bets via AIG CDS before they are marked down (can't afford earnings hits you know).
4. Give Obama, Dodd, etc. another "crisis"/diversion (e.g., AIG bonuses) to feed the masses via mock congressional hearings so he can ram through another illegal tax and take more control of the private sector. But we all know that with UBS offshore tax havens the really rich can just avoid all these little people taxes. Plus with all these tax evaders accounts (50,000 and counting) at his fingertips Obama is sure to get whatever he wants from lesser captains on industry, or else, 7.
5. Goldman then pays bonuses in the form of "loans" to their top 1000 employees so they can personally invest in their own illiquid and commercial real-estate hedge funds, 1.
6. Use political hacks to intimidate FASB to eliminate all safeguards and accounting standards like "mark to market".
7. Print $1 Trillion to buy more toxic crap from Goldman et. al. and kill the dollar in the process. This will severely harm Americans once prices for everyday living skyrocket and I have no idea how we will be able to finance our multi-trillion dollar running deficit.
8. Repurchase all these toxic assets with the reloaded Goldman hedge funds (remember the "loans" noted above) at inflated prices (of course tax payers covering the spread and insuring the losses)
9. Hold a press conference whereby the Goldman CFO tells the public he has no "guilt" for stealing $ billions, 2.
10. Now the circle is complete: my children will toil for decades under crushing taxes, prices, etc. so that Goldman, Buffet, and politicians (Obama, Pelosi, Bush Family, Dodd, Paulson, Buffet, etc.) can grab more power, money, and control.
Goldman's stock goes up to over $100/share while the lesser connected banks are eliminated (Merrill, Bear Sterns, Lehman, etc.).
This process is equivalent to forcing a bystander (i.e., taxpayer), at gun point, to pay you the full value of your homeowners insurance policy even though your house is fine. Once his cash is in your hand you go out and buy back that same house at a big discount with the extorted money. So far you got rid of an overpriced asset and bought it back at a low price and forced an innocent person to swallow all the losses. Now just to insure that your profits are sound you go back to the bystander again and force him to insure your house against any losses when you sell it in the future. Geitherner is completing the last step in such a process right now - see below.
I am amazed that any politician would stand aside, regardless of party, and let these crimes take place and this nation be taken down a rat hole. Is this the USA or Zimbabwe?
How long do you think that Goldman and their loyal political and regulatory servants can lie, cheat, enslave, extort, bribe, commit fraud, violate the constitution etc. before the public begins to write their own rules for protest and retribution? Transparency and rule of law are a two way street.
Once prices move up, inflation hits, and the unemployment rate, Obama's approval rate, and the treasury rates intersect the public will be fully informed of the truth (I will see to it) and they will be ready to march on DC and NYC and maybe have a few select face to face meetings with the lead actors in this great heist.
Over time I believe that the public will join the guilty above in forms of lawlessness that benefits them, but for some reason those who are honest and in power don't seem to grasp the gravity of the situation.
The current situation is significantly worse then a terrorist attack and is totally unnecessary. The public can handle taking the tough medicine as long as there is transparency, fairness, and the rule of law is respected. Nobody wants to see anarchy (the satisfaction of street justice would be sweet but short lived), but until the bankers and their cronies are jailed I am afraid the rage will boil over and get out of hand.
Just as Brian was able to fill the seat of a corrupt felon (Duke Cunningahm) by the democratic process and justice was had via the judicial process I expect him to get in there and fight for the rights of his constituents.
US citizen, net taxpayer, father of four, and gun owner
1. Goldman "loans" to employees: http://www.nytimes.com/2009/03/17/business/17wall.html?ref=business
2. Goldman tells public to go to hell and deal with their crimes: http://www.forbes.com/2009/03/20/goldman-sachs-aig-business-wall-street-goldman.html?partner=yahootix
3. Buffet is a big part of the conflict of interest and is throwing the levers of govt to enrich him self. In this story he tells investors to be patient while he puts a longterm plan (to steal from the public) in play: http://www.marketwatch.com/news/story/pain-chasing-warren-buffett-brk-gs/story.aspx?guid=%7B03539371-ED55-49FB-A448-E21F90666F1C%7D
4. Buffet's position in Obama's administration: http://www.huffingtonpost.com/2008/05/19/warren-buffet-backs-obama_n_102451.html AND http://www.nydailynews.com/money/toplists/obamas_economic_advisors/obamas_economic_advisors.html
5. Geithner (the tax evader)'s chief of Staff, Mark Patterson, Goldman lobbyist: http://www.economicpolicyjournal.com/2009/01/geithners-chief-of-staff-was-lobbyist.html
6. NY Fed Chairlman, who took Geithners spot, Goldman: http://www.pogo.org/pogo-files/letters/government-oversight/go-bo-20090312.html
Even the appearance of favoritism can significantly damage the public's trust and impair the government's efforts to stabilize financial markets. Therefore, it is important to point out that many of the officials, advisers, and contractors who have or continue to play a central role managing the bailout at the Fed and Treasury also have a history of working or lobbying for Goldman Sachs, or serving on the company's board, including: former Treasury Secretary Henry Paulson,3 Treasury Interim Assistant Secretary Neil Kashkari,4 Treasury Chief of Staff Mark Patterson,5 New York Fed President William Dudley, New York Fed Chair Stephen Friedman, Edward Forst, Kendrick Wilson III, Dan Jester, Steve Shafran, and Robert Steel.6Furthermore, in exchange for the government's initial assistance to AIG, Henry Paulson insisted that chief executive Robert Willumstad step aside, only to be replaced by a former director at Goldman Sachs, Edward Liddy.7
7. UBS and the 52,000 US tax dodgers held captive by Obama. http://topics.nytimes.com/top/news/business/companies/ubs_ag/index.html
8. Political cronies beat FASB until they are willing to abandon transparency in accounting. http://www.reuters.com/article/governmentFilingsNews/idUSN1834601520090319
Geithner's Toxic Asset Plan
by CalculatedRisk on 3/21/2009 05:30:00 AMThe NY Times has some details ...
From Edmund L. Andrews, Eric Dash and Graham Bowley: Toxic Asset Plan Foresees Big Subsidies for Investors
The plan to be announced next week involves three separate approaches. In one, the Federal Deposit Insurance Corporation will set up special-purpose investment partnerships and lend about 85 percent of the money that those partnerships will need to buy up troubled assets that banks want to sell.
In the second, the Treasury will hire four or five investment management firms, matching the private money that each of the firms puts up on a dollar-for-dollar basis with government money.
In the third piece, the Treasury plans to expand lending through the Term Asset-Backed Secure Lending Facility, a joint venture with the Federal Reserve.
More approaches doesn't make a better plan.
The FDIC plan involves almost no money down. The FDIC will provide a low interest non-recourse loan up to 85% of the value of the assets.
The remaining 15 percent will come from the government and the private investors. The Treasury would put up as much as 80 percent of that, while private investors would put up as little as 20 percent of the money ... Private investors, then, would be contributing as little as 3 percent of the equity, and the government as much as 97 percent.
With almost no skin in the game, these investors can pay a higher than market price for the toxic assets (since there is little downside risk). This amounts to a direct subsidy from the taxpayers to the banks.
Oh well, I'm sure Geithner will provide details this time ....
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