Wrong Bailout

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Editor’s Comment:

It isn’t in our own mainstream media but the fact is that Europe is verging on  collapse. They are bailing out banks and taking them apart (something which our regulators refuse to do). The very same banks that caused the crisis are the ones that are going to claim they too need another bailout because of international defaults. The article below seems extreme but it might be right on target.

From the start the treatment of the banks had been wrong-headed and controlled by of course the banks themselves. With Jamie Dimon sitting on the Board of Directors of the NY FED, which is the dominatrix in the Federal Reserve system, what else would you expect?

The fact is that, as Iceland and other countries have proven beyond any reasonable doubt, the bailout of the banks is dead wrong and it is equally wrong-headed to give them the continued blank check to pursue business strategies that drain rather than infuse liquidity in economies that are ailing because of intentional acts of the banks to enrich themselves rather than the countries that give them license to exist.

The bailout we proposed every year and every month and practically every day on this blog is the only one that will work: reduce household debt, return things to normalcy (before the fake securitization of mortgages and other consumer and government debt) and without spending a dime of taxpayer money.  The right people will pay for this and the victims will get some measure of relief — enough to jump start economies that are in a death spiral.

Just look at home mortgages. They were based upon layers of lies that are almost endless and that continue through the present. But the principal lie, the one that made all the difference, was that the mortgage bonds were worth something and the real property was worth more than the supposed loans. With only a few exceptions those were blatant lies that are not legal or permissible under any exemption claimed by Wall Street. Our system of laws says that if you steal from someone you pay for it with your liberty and whatever it is you stole is returned to the victim if it still exists. And what exists, is millions of falsely created invalid illegal instruments recorded in title registries all over the country affecting the title of more than 20 million households.

All we need to do is admit it. The loans are unsecured and the only fair way of handling things is to bring all the parties to the table, work out a deal and stop the foreclosures. This isn’t going to happen unless the chief law enforcement officers of each state and the clerks of the title registry offices wake up to the fact that they are part of the problem. It takes guts to audit the title registry like they did in San Francisco and other states, cities and counties. But the reward is that the truth is known and only by knowing the truth will we correct the problem.

The housing market is continuing to suffer because we are living a series of lies. The government, realtors and the banks and servicers all need us to believe these lies because they say that if we admit them, the entire financial system will dissolve. Ask any Joe or Josephine on the street — the financial system has already failed for them. Income inequality has never been worse and history shows that (1) the more the inequality the more power those with wealth possess to keep things going their way and (2) this eventually leads to chaos and violence. As Jefferson said in the Declaration of Independence, people will endure almost anything until they just cannot endure it any longer. That time is coming closer than anyone realizes.

Only weeks before France erupted into a bloody revolution with gruesome dispatch of aristocrats, the upper class thought that the masses could be kept in line as long as they were thrown a few crumbs now and then. That behavior of the masses grew from small measures exacted from a resisting government infrastructure to simply taking what they wanted. Out of sheer numbers the aristocracy was unable to fight back against an entire country that was literally up in arms about the unfairness of the system. But even the leaders of the French Revolution and the Merican revolution understood that someone must be in charge and that an infrastructure of laws and enfrocement, confidence in the marketplace and fair dealing must be the status quo. Disturb that and you end up with overthrow of existing authority replaced by nothing of any power or consequence.

Both human nature and history are clear. We can all agree that the those who possess the right stuff should be rich and the rest of us should have a fair shot at getting rich. There is no punishment of the rich or even wealth redistribution. The problem is not wealth inequality. And “class warfare” is not the right word for what is going on — but it might well be the right words if the upper class continue to step on the rest of the people. The problem is that there is no solution to wealth inequality unless the upper class cooperates in bringing order and a fair playing field to the marketplace —- or face the consequences of what people do when they can’t feed, house, educate or protect their children.

LaRouche: The Glass-Steagall Moment Is Upon Us

Spanish collapse can bring down the Trans-Atlantic system this weekend

Abruptly, but lawfully, the Spanish debt crisis has erupted over the past 48 hours into a systemic rupture in the entire trans-Atlantic financial and monetary facade, posing the immediate question: Will the European Monetary Union and the entire trans-Atlantic financial system survive to the end of this holiday weekend?

Late on Friday afternoon, the Spanish government revealed that the cost of bailing out the Bankia bank, which was nationalized on May 9, will now cost Spanish taxpayers nearly 24 billion euro—and rising. Many other Spanish banks are facing imminent collapse or bailout; the autonomous Spanish regions, with gigantic debts of their own, are all now bankrupt and desperate for their own bailout. Over the last week, Spanish and foreign depositors have been pulling their money out of the weakest Spanish banks in a panic, in a repeat of the capital flight out of the Greek banks months ago. 

The situations in Greece, Italy, Portugal, and Ireland are equally on the edge of total disintegration—and the exposure of the big Wall Street banks to this European disintegration is so enormous that there is no portion of the trans-Atlantic system that is exempt from the sudden, crushing reality of this collapse.

Whether or not the system holds together for a few days or weeks more, or whether it literally goes into total meltdown in the coming hours, the moment of truth has arrived, when all options to hold the current system together have run out.

Today, in response to this immediate crisis, American political economist Lyndon LaRouche issued a clarion call to action. Referring to the overall trans-Atlantic financial bubble, in light of the Spanish debt explosion of the past 48 hours, LaRouche pinpointed its significance as follows:

“The rate of collapse now exceeds the rate of the attempts to overtake the collapse. That means that, essentially, the entire European system, in its present form, is in the process of a hopeless degeneration. Now, this is something comparable to what happened in Germany in 1923, and they’ve caught themselves in a trap, where a rate of collapse exceeds the rate of their attempt to overtake yesterday.

“So therefore, we’re in a new situation, and the only solution in Europe, in particular, is Glass-Steagall, or the Glass-Steagall equivalent, with no fooling around. Straight Glass-Steagall — no bailouts! None! In other words, you have to collapse the entire euro system. The entirety of the euro system has to collapse. But it has to collapse in the right way; it has to be a voluntary collapse, which is like a Glass-Steagall process. This means the end of the euro, really. The euro system is about to end, because you can’t sustain it.

“Everything is disintegrating now in Europe. It can be rescued very simply, by a Glass-Steagall type of operation, and then going back to the currencies which existed before. In other words, you need a stable system of currencies, or you can’t have a recovery at all! In other words, if the rate of inflation is higher than the rate of your bailout, then what happens when you try to increase the bailout, you increase the hysteria. You increase the rate of collapse. In other words, the rate of collapse exceeds the rate of bailout.

“And now, you have Spain, and Portugal implicitly, and the situation in Greece. Italy’s going to go in the same direction. So the present system, which Obama’s trying to sustain, in his own peculiar way, is not going to work. There’s no hope for the system. Nor is there any hope for the U.S. system in its present form. The remedies, the problems, are somewhat different between Europe and the United States, but the nature of the disease is the same. They both have the same disease: It’s called the British disease. It’s hyperinflation.

“So, now you’re in a situation where the only way you can avoid a rate of hyperinflation beyond the rate of hyper-collapse is Glass-Steagall, or the equivalent. You have to save something, you have to save the essentials. Well, the essentials are: You take all the things that go into the bailout category, and you cancel them. How do you cancel them? Very simple: Glass-Steagall. Anything that is not fungible in terms of Glass-Steagall categories doesn’t get paid! It doesn’t get unpaid either; it just doesn’t get paid. Because you remove these things from the categories of things that you’re responsible to pay. You’re not responsible to bail out gambling, you’re not responsible to pay out gambling debts.

“Now, the gambling debts are the hyperinflation. So now, we might as well say it: The United States, among other nations, is hopelessly bankrupt.

“But this is the situation! This is what reality is! And what happens, is the entire U.S. government operation is beyond reckoning. It is collapsing! And there’s only one thing you can do: The equivalent of Glass-Steagall: You take those accounts, which are accounts which are worthy, which are essential to society, you freeze the currencies, their prices, and no bailout. And you don’t pay anything that does not correspond to a real credit. It’s the only solution. The point has been reached—it’s here! You’re in a bottomless pit, very much like Germany 1923, Weimar.

“And in any kind of hyperinflation, this is something you come to. And there’s only one way to do it: Get rid of the bad debt! It’s going to have to happen.

“The entire world system is in a crisis. It’s a general breakdown crisis which is centered in the trans-Atlantic community. That’s where the center of the crisis is. So, in the United States, we’re on the verge of a breakdown, a blowout; it can happen at any time. When will it happen, we don’t know, because we’ve seen this kind of thing before, as in 1923 Germany, November-December 1923, this was the situation. And it went on after that, but it’s a breakdown crisis. And that’s it.

“Those who thought there could be a bailout, or they had some recipe that things were going to be fine, that things would be manageable, that’s all gone! You’re now relieved of that great burden. You need have no anxiety about the U.S. dollar. Why worry about it? Either it’s dead or it’s not! And the only way it’s not going to be dead, is by an end of bailout. That’s the situation.

“We don’t know exactly where the breakdown point comes. But it’s coming, because we’re already in a system in which the rate of breakdown is greater than the rate of any bailout possible! And there’s only one way you can do that: Cancel a whole category of obligations! Those that don’t fit the Glass-Steagall standard, or the equivalent of Glass-Steagall standard: Cancel it, immediately! We don’t pay anything on gambling debts. Present us something that’s not a gambling debt, and we may be able to deal with that.”

LaRouche concluded with a stark warning:

“If you think that this system is going to continue, and you can find some way to get out of this problem, you can not get out of this problem, because you are the problem! Your failure to do Glass-Steagall, is the problem. And it’s your failure! Don’t blame somebody else: If you didn’t force through Glass-Steagall, it’s your fault, and it continues to be your fault! It’s your mistake, which is continuing!

“And that’s the situation we have in Europe, and that, really, is also the situation in the United States.

“But that’s where we are! It’s exactly the situation we face now, and there’s no other discussion that really means much, until we can decide to end the bailout, and to absolutely cancel all illegitimate debt—that is, bailout debt!

“There’s only one solution: The solution is, get rid of the illegitimate disease, the hyperinflation! Get rid of the hyperinflationary factor. Cancel the hyperinflation! Don’t pay those debts! Don’t cancel them, just don’t pay them! You declare them outside the economy, outside the responsibility of government: We can no longer afford to sustain you, therefore, you’ll have to find other remedies of your own. That’s where you are. It had to come, it has been coming.”





32 Responses

  1. […] Read more… Posted in Banks, MERS, News Around The Country, States « Inside the Mind of JPMorgan Chase CEO, Jamie Dimon Should States Use Settlement Money for Deficits or Housing? Oh, So What and Who Cares? » You can leave a response, or trackback from your own site. […]

  2. but criminals prevent underdogs to prosecute them: http://www.communitycurrency.org/BushCrimeFamily.html

  3. Obama Foreclosure Program Criticized By Expert Panel
    Posted: 06/08/2012 3:47 pm Updated: 06/08/2012 4:52 pm


  4. This financial crisisi is not about homes nor MBS. It is about the next step to control the new world order currency. Iraq invaded to stop Euro dollar trade with Russia. Libia invaded to capture gold bar and stop their new currency introduction. SDRs are being redfined by IMF . China and Russia to start their own monetary system . It they do not play then resources will be choked off.

  5. The Russians already have troops in Syria. It is too obvious. Either Sudan or Pakistan will ignite the war. Sudan will be closed to choke off resources . China will then back Pakistan. Russians will back Syria. All else is open water.

  6. fail to understand that criminals don’t prosecute themselves http://www.seizeliberty.com/Bush%20Crime%20Family%20Flow%20Chart.htm & poop @laws: http://www.judicialwatch.org/

  7. I sent a FDCPA letter via an attorney certified mail signature required and they ignored it and did not answser. I motioned for discovery and was denied discovery.

  8. Good the fall of the cabal empire is looking possible.

  9. This is a good indicator of justice coming also. After all the coveru, my skeptic brain will have to see more proof of all of this before I dance int the street. And I live on a private road.

  10. The insanity of it all is getting to me today. A Man, if you do a little research, the consensus out there among people with half a brain is that the US are waiting for Israel to be attacked and declare war on Iran and may even be working behind the scene to stage an attack, so that they can go after both Russia and China. It has been done. We know the US are not strangers to it.

    I wouldn’t put it past the Russian to concoct something like that with Iran or Syria. Otherwise, that missile had no reason to launched. They want to make sure everything is working as it should. Anyway, that doesn’t augur too well. Whatever happens, I hope it to be quick and swift. The last thing I want is to linger forever in a war zone.

  11. sorry, the right case is U.S. v. Tann:

  12. Re: LaRouche dreaming of justice: Yes, but may be an independent, and incorruptible, Grand Jury can indict financial gangsters & order U.S. marshals or National Guard to round them up by the thousands in a Nuremberg style trial for treason, etc. See below a lowly woman getting 40 months jail for forging a few checks so our financial criminals should each receive life-sentences for having forged hundreds of trillions of $ of bonds, checks, mortgages, and related financial instruments? at the least it is probably legal to resort to armed response to contain spread of their contamination, virus, and cancer, to the remaining home-owners, against anyone stealing homes on behalf of financial criminals on the loose & supported by county sheriffs… that is really what LaRouche and Oathkeepers stand for… http://www.cadc.uscourts.gov/internet/opinions.nsf/F8CD05F77623E49D852578C700513F91/$file/09-3138-1317419.pdf

  13. I dont think the Russians want to mess with Israel. Maybe the bankrupt America but not with Israel.


  14. […] Filed under: foreclosure Tagged: bailout, Bankia Bank, banks, Declaration of Independence, Europe, foreclosure, France, French Revolution, Germany, Glass-Steagall, Greece, housing market, hyperinflation, ICELAND, Ireland, Italy, Jamie Dimon, Jefferson, Lyndon LaRouche, mortgage bonds, mortgages, NY Fed, Portugal, realtors, San Francisco, servicers, SPAIN, title, trans-Atlantic financial bubble, Wall Street Livinglies’s Weblog […]

  15. This is only the beginning… Click on the link for 22 cases of foreclosures gone bad. And why did a Russian missile misfire over Israel? Has it finally come to that? It was to be expected…


    Missouri Foreclosure Shooting: Man Shot After Opening Fire On Police
    Posted: 06/07/2012 1:02 pm Updated: 06/07/2012 3:40 pm

    Sign Up Follow: Video, Fannie Mae, Man Shoots At Cops St Ann, Missouri, Missouri Eviction Shooting, Police Shoot Evicted Man Missouri, Photo Galleries, St Ann, St Ann Eviction Shooting, Business News Police in St. Ann, Mo., shot a man that they were evicting from his home after the 51-year-old allegedly opened fire on them Wednesday. Authorities had used tear gas at the St. Louis suburb residence, setting off the gunfire that ended with the evicted man wounded, according to police.

    According to CBS St. Louis, Fannie Mae started the foreclosure process in March, after the man stopped making mortgage payments on the house that he had lived in since childhood. Police and sheriff’s deputies showed up on the morning of June 6 to serve him with an eviction notice.

    Despite “No Trespassing” signs posted in the windows, deputies approached the house. According to KSDK-TV, the man answered the door holding a gun and refused to leave the house.

    CBS St. Louis reports that police fired tear gas into the man’s house, after which the suspect began firing shots. Police returned fire and the suspect was wounded in the arm and transported to a local hospital with non-life threatening injuries, according to KMOV 4. No officers were hit, but the man now faces criminal charges for allegedly firing on police, in addition to losing his home.

    The incident is unusual in the foreclosure process, but underscores the extremes to which both public authorities and private sector banks can resort in order to evict borrowers, and to which homeowners can go to remain in a home.

    “It’s rare,” St. Ann Police Chief Bob Schrader told HuffPost, referring to the use of tear gas and gunfire in foreclosure evictions. “Usually we can talk them out.”

    Schrader told KSDK-TV that he had known the man for 30 years, and tried to reason with him at the door.

    Police aren’t releasing the name or address of the resident until they file warrants for his arrest, and HuffPost was unable to contact him for this story.

    The man worked as a fence builder and was described as a “a really good neighbor” by neighbor Mark Voelkerding. Other neighbors told CBS St. Louis that the man had also been distraught over the recent loss of his mother, but the foreclosure had been his tipping point.

    Other evictions have turned violent in the past. In 2009, a 64-year-old Arizona man who was being evicted from his home was killed in a shoot-out with the SWAT team. And in 2011, a man was shot by police after setting fire to the home from which he was being evicted.

    Although frightening confrontations during the foreclosure process have made headlines over the past few years, many high-profile cases have not involved police, but rather banks improperly breaking into homes, changing locks and removing borrowers’ belongings.

  16. District Court overrruled part of Agard on March 28:


  17. “Constructive knowledge means that a person exercising reasonable care would have discovered the information at issue.”
    Brown v Household Rlty Corp, 146 Wn. App. 157, 166, 189
    P.3d 233 (2008)
    There is no reasonable care we could have taken imo, outside maybe sending a qwr (and any finding by a court that we should have done one imo is bull because a NOD should recite reliable FACTS) and only then if we got an honest answer, which would have led us to know of the ‘inaccuracies’ in the limited info we were being fed. But who was going to send us an answer to a qwr which conflicted with a NOD (for instance)?

  18. JG,

    That’s the only possible take on it given what we already know about him… and his C and B origins.

  19. Well, that’s one (likely) take on Geitner’s actions. So what’s to stop we the people from giving him our own impressions of the issues, by the droves?

  20. “The Ninth Circuit has described the theory of “fraudulent concealment”, which can operate as an exeption to claim preclusion (a component of res judicata, “the thing decided” – sic), as when a plaintiff pleads facts showing that (a defendant) actively misled him
    and that he had neither actual or constructive knowledge of the facts constituting his claim for relief despite his diligence in trying to discover the pertinent facts.”
    Sharpe v Select Portfolio Services, Inc. (formerly known as Fairbanks Capital), citing Rutledge v Boston Woven Hose & Rubber Co. , 576 F.2d 248, 249-50, 9th 1978
    “Courts apply the fraudulent concealment exception when defendant’s actions ‘prevented plaintiff from knowing, at the time of the first suit (must there have been a first suit? Not sure, but think not -sic) either that he had a certain claim or else the extent of his injury.”
    Constantini v Trans World Airlines, 681 F.2d 1199, 1203, 9th l982

    The devils in the details, of course. One would need to make a decent case, for instance, that one was not aware or could not reasonably have known of the deceit which ‘prompted’ one not to act before something was decided (essentially) AND (conjunctions are very important in decisions and laws alike) that the bad guy ‘actively misled’ one.
    This is important stuff and probably reqs more research and discussion / debate of what would fly might be helpful. California, like othes, I believe, has some arcane and imo unconstitutional law that a f/c sale determines the parties’ rights. What a crock! But let’s say you were ‘actively’ mislead by some bs / bogus notice of default which alleged stuff that you later learned was not true or maybe bogus info in a response to a qwr. Weren’t you “actively misled” by those statements in the nod or response or in ? How could you have had actual or constructive notice that the statements weren’t true? What would a court find persuasive and that would pass for your ‘diligence’ (as in the quote above) ? I have trouble with that one, somewhat. Are we never to take anything at face? I mean, before say 2011, when the breed we are dealing with became clear.
    Because of fraudulent concealment, some of us just didn’t have a” full and fair opportunity to raise certain claims” pre-foreclosure sale.
    There are exceptions to every law I have ever seen (pretty sure that’s accurate) and res judicata is no exception. It’s all about the proper arguments made to overcome the principles of rj, and if I’m getting this right, these cases support the exceptions.

  21. Meanwhile, Geithner continues to cater to the banks by offering to mediate with regulatory agencies on their behalf against Frank-Dodd, a useless regulation full of holes. Have mercy on us!!!

    Can’t wait to start seeing arrests. Or riots. Whichever comes first.

    Geithner Seeks Bankers’ Dodd-Frank Objections
    by The Compliance Exchange on June 6, 2012

    Treasury Secretary Timothy F. Geithner has challenged bankers to give him specifics on their longstanding complaint that the Dodd-Frank Act is imposing costly, confusing and burdensome regulations on them, according to four people familiar with the matter.

    The Federal Advisory Council, a group of bank executives from each of the 12 Federal Reserve districts, complained to Geithner at a May 10 meeting about overlapping and duplicative rules, according to the people. Geithner urged the bankers to prepare a study with examples of regulatory burden, said the people, who are preparing the report.

    Geithner offered to use his ability to reach across agencies to better coordinate and streamline rules if he found the report convincing, according to the people, who asked not to be identified because they weren’t authorized to discuss the study. The complaints include the handling of so-called stress tests of banks’ ability to weather a crisis, capital requirements and restrictions on mortgage servicing.

  22. Investigations are being launched everywhere… I view it as a good sign.

    Insider Trading Is Going Japanese
    by J. J. Kellington on June 7, 2012

    The US is not alone in confronting a deluge of insider trading activities. The Securities and Exchange Surveillance Commission (SESC) of Japan is currently seeking to significantly increase their staff to deal with a surge in insider trading and accounting fraud investigations, including the cases involving Nippon Sheet Glass … Read More »

  23. Off topic (as usual) but my kind of news. Upbeat, positive, with a hint of forthcoming justice…

    Worried Swiss bankers get own advice hotline
    Jun 7, 2012 12:01pm Email Print Facebook GENEVA (AP) —

    Swiss bankers worried they may be arrested abroad as part of tax evasion probes now have a special number to call for advice.
    The Swiss Bank Employees Association SBPV says it has set up a hotline to counsel bankers who fear they could be targeted because of their clients’ tax evasion.

    The SBPV said Thursday that the service has been popular since it was first announced last week.

    Several Swiss banks have recently caved to pressure from the United States to hand over the names of employees who dealt with foreign clients.

    U.S. authorities are investigating thousands of Americans with offshore bank accounts for possible tax evasion and have previously detained visiting foreign bankers to obtain information on their clients.

  24. Forgot to say my brother-in-law and sister live in non judicial Washington state.

  25. My brother in law and sister are amongst the millions of us trying to save their home. They were just told the date for them to have their day with the fraudsters to prove the mortgage is owned by them is almost a year from now, so not to worry about a foreclosure until after May 2013. They are fighting MERS and AMHIS I think that is the correct spelling. I have a new computer that I am learning to use so I dont want to leave this site and try to find it again. So AMHIS is close enough. They had people knocking at their door weekly or more and threat of foreclosure and sale constantly, until they sent a letter to Cease and Disist and FDCPA letter and and Objection letter. THen filed them all in the county records. No more notices and no more phone calls and no more letters posted on their door. They have demanded to have a one on one meeting and be shown proof of who owns the loan. Their FDCPA letter was never answered but ignored, until the latter letters were sent and Ken tried to make an appointment with them. Never getting it.

  26. LaRouche obviously day-dreaming 6-decades- http://anonymousphysicist.com/

  27. LaRouche Executive Order: “Jail Bernanke, Geithner And Obama Now For Massive Theft And Loan Fraud” http://larouchepac.com/node/18909

  28. Hey Pie,

    Is this what you were alluding to? It’s been long coming but I don’t think anyone is overly surprised… What’s important, though, is what will come out of it.

    Is Jamie Boy leaving us anytime soon? What about the Stumpf? Moynihan? Geithner? What say you?

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