Historically, every time the Federal Reserve has taken over a bank or savings and loan, the failed institution has been seized by the Fed’s staff arriving at the target institution’s headquarters after the close of business on Friday night, so that the public has the opportunity to adjust to the shock over the weekend, and so that there will not be a run of withdrawals the next morning.
This time, it would appear that the Fed was manipulated by politics regarding the public opposition to the Democratic Congress’ support of Paulson’s $700 billion, no strings attached, gift to his colleagues on Wall Street.
By Thursday afternoon it was clear that the Republicans in Congress had finally decided to listen to the wishes of the voters, and were refusing to go along with the Democratic Finance Chiefs Senators Chris Dodd and detached Barack Obama.
So the Fed attempted to panic the public by taking over Washington Mutual on Thursday night instead of over the weekend.
The Fed is part of the criminal conspiracy seeking to panic the public and the ignorant buffoons in Congress into a fearful stampede or else the world will end!
This is contemptible manipulation of the public through false fear, identical to the strategy of fearful stampede into the second Iraq war.
Thursday’s seizure of Washington Mutual by the Fed is a despicable attempt to use fear and panic to stampede both Congress and the public into a totally wrong and incredibly absurd course of action.
The $700 billion gift to Wall Street makes no sense at all and does nothing to treat the root cause of our problem, which is the permission of the government to financial institutions to bundle mortgages into tradable security packages.
The first step in curing the problem is to outlaw CDO and CMO packages, because they separate accountability from risk, thereby encouraging what should be criminalized activity bu unscrupulous mortgage lenders.
Paulson’s and the Democratic Congress want the bailout package to include “adjusting” individual mortgages downward, not to the new market value of the home, but to what the borrower can afford. Who determines, and by what mechanism, what the borrower can afford.
The adjustment provision goes far beyond socialism: it is pure Communism and abject redistribution of wealth.
No financial system on earth, and no nation, can survive is the government haas the authority to “adjust” individual’s debts.
The bailout package may well be the end of America.
Call your Congressmen and tell them you oppose every aspect of the bailout package.
Current laws and the operation of the Federal Reserve are everything we need for the markets to reach equilibrium. No intervention by government can make the oversupply of housing disappear.
Local governments and pressures within the Democratic Party to seze the foreclosed homes, or to use taxpayer dollars to repo them, and use them for low cost community housing is nothing but the purest form of Marxist Communism that will bankrupt America.
Every elected official who supports the Bush/Chris Dodd/Barack /Obama/Democrats bailout plans should be impeached, AND I mean it.
Then go to these sites and tell your elected officials that you “OPPOSE THE BAILOUT”