Freddie n Fannie Scam Hidden In Broad Daylight

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Postby vigilant » Thu Sep 11, 2008 8:17 am

antiaristo,

Wondered where you were. Nice to see you around. Always enjoyed your take on the scene....
The whole world is a stage...will somebody turn the lights on please?....I have to go bang my head against the wall for a while and assimilate....
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Postby FourthBase » Thu Sep 11, 2008 10:44 am

What was certain was that this was a rigged pyramid scheme, the thieves knew it would collapse, they knew the people on the bottom would go broke, while the profits flow to the top of the "narrow" part of the pyramid.


Image

Image

...and so on. Forget any occult significance for a moment...it's like the pyramid scheme has been openly, flamboyantly declared. Considering how poisonous any public association with pyramid schemes should be to financial institutions supposedly dependent on our trust...WTF.
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Postby Penguin » Thu Sep 11, 2008 10:46 am

FourthBase wrote:
What was certain was that this was a rigged pyramid scheme, the thieves knew it would collapse, they knew the people on the bottom would go broke, while the profits flow to the top of the "narrow" part of the pyramid.



...and so on. Forget any occult significance for a moment...it's like the pyramid scheme has been openly, flamboyantly declared. Considering how poisonous any public association with pyramid schemes should be to financial institutions supposedly dependent on our trust...WTF.


Exactly. And pyramid schemes are illegal everywhere, except in Casino Royale.
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Postby Penguin » Thu Sep 11, 2008 11:06 am

Its "in your face, punk". What ya gonna do about it, noy use money? Ha!
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Postby bks » Thu Sep 11, 2008 11:36 am

Great. Let's stay with the pyramid scheme metaphor, because that is easily understood. In a classic pyramid scheme, I give you $1,000, and so do nine other people, and so you now have $10,000 where you once had $1,000.

I am out $1,000, but if I can get 10 people to give me $1,000 for the same reason I gave it to you, I'll have $10K too. If I can't, I'll be left holding the (empty) bag.

The problem, of course, is that eventually the pool of 'investors' dries up, and hundreds or thousands or hundreds of thousands get screwed so that a few get rich. The exponential character of the thing insures it. Those who have made out can recycle some of their profit into the scheme in hopes of dragging out the period of time until its found out, but the math ultimately can't be overcome.

In such a scheme, it would be easy to find who the original schemers were, and charge them with crimes. If they knowingly misled investors, they're guilty of fraud. So who are they in this case, and who enabled them? The author of this article names names, but vigilant claims he doesn't mean to hold them responsible.

So is vigilant claiming that Ben Bernanke (and his predecessor), Christopher Cox, James Lockhart, Hank Paulson and the auditors at Pricewaterhouse Cooper are guilty of crimes? GREAT! Tell us what they are, and we can try in the little way we can to start a groundswell against them.

And in case it needs saying, I am 90% earnest in this appeal and only about 10% being a jerk-off. The jerk-off part comes from the sad recognition that to make headway in conversations with people whose heads are typically up their asses on this stuff, I need to be armed with particulars.

Now, I'm being a lazy fuck by relying on antiaristo and vigilant and the others with a better economic background here, but I trust them and I'll go and check the particulars before I spout off to anyone else (Probably :)

And yes, I'm also very aware that any effort to simplify this into the terms of individual responsibility risks doing a great violence to the true character of the scheme. But most 'regular' folk aren't trained to think in terms of systems effects, only individual responsibility.

My concern is that there IS NO BEGINNING TO THIS CRIME, because even at the 'beginning' it was linked to 'regular business practices' in the aftermath of Glass-Steagall being repealed. So Glass-Steagall GOT repealed; this mess 'ensued' and even though it was entirely foreseeable, the criminals who engineered this may very well NEVER be held fully responsible because their crimes look at lot like what is sometimes call "initiative" or "enterprise" in certain social circles (in the RI social circle, it's appropriately called "CRIME"). That's my concern.

So I want particulars, specific action that were taken which can be pinned on a person. I'll risk the deformation of the thing's character in exchange for some good specifics.

And antiaristo: thanks for the answers, and I want to ask some more in a future post.
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Postby vigilant » Thu Sep 11, 2008 2:40 pm

Of magicians...con games....illusions, good as gold...
the money masters...and pissing on your leg...

Highly recommended video link included, that will change
the way you think about money...




fourthbase wrote:
...and so on. Forget any occult significance for a moment...it's like the pyramid scheme has been openly, flamboyantly declared. Considering how poisonous any public association with pyramid schemes should be to financial institutions supposedly dependent on our trust...WTF.


bks wrote:
My concern is that there IS NO BEGINNING TO THIS CRIME, because even at the 'beginning' it was linked to 'regular business practices' in the aftermath of Glass-Steagall being repealed.




vigilant writes:
"Flamboyantly declared"...now thats a phrase...And oh yeah...there is a beginning, but where would you like to start? At the beginning of the scam, the middle, or the end, or try to peg this particular phase, because this scam has been going on so long, it might be difficult to peg exactly.....

In all trades and crafts, we have the mediocre, and the true masters of their crafts. We have surgeons that can't handle much more than removing topical growths, and surgeons that can perform brain operations that defy the imagination of the average person. Often the masters have family histories of of excellence in their crafts, and the torch is handed down through the generations, and sometimes a new master springs into being of his own volition.

Magicians have the mediocre and the masters too. All con-men are magicians, but not all magicians are con-men. The most skillful, and most successful con-men, often come from families that have a long history of skillfull cons in the family tree. It takes an almost complete lack of empathy for the human race to be a master con-man, and that behavior is typically learned, and not inherent from birth, in most people anyway.

The goal of a con is to separate a person from something of value, so that he may have the value for himself, while taking very little or no personal risk in the process. The most essential ingredient in a con-scheme is "illusion". The con-man must create an illusion, sufficient to warp the perception of the "mark" (conned person), so that the mark will separate himself from the valuable property in some manner.

Magic is illusion, and illusion is magic. The most successful magicians in the history of the world, are also usually the most flamboyant, and sheer "audacity" is one of the main ingredients in their magic act.

Audacity definiton: bold or arrogant disregard of normal restraints
Flamboyant definition: marked by or given to strikingly elaborate or colorful display or behavior


Most people will not engage in flamboyant audacities when considering a con-scheme because a persons natural inclination is to do dirty deeds in the dark, and in secret, for fear of being discovered as a participant in the con-scheme. This being the case, their natural inclination is "not" to view things in the wide open, in plain sight, as being a con-scheme. Human nature is to look for that which is hidden when looking for con-schemes, not realizing that things are often best hidden in plain sight.

The true master con-men, that operate successfully on enormous scales in society, will do just the opposite. Con-schemes hidden in plain sight blend in with the landscape, and by their association with things that can stand the test of "the light of day", they are perceived as legitimate. Some of the wealthiest, and most well known families in the world, are masters of illusion, affiliated with legitimate enterprises, or seemingly legitimate enterprises. Buried within these enterprises are kernels of the con, that go unnoticed by their affiliation with legitimate enterprise and activity.

These people are often audacious and flamboyant to the extreme. They will bestow upon themselves grand titles, sometimes declare almost superhuman abilities, and lay claim to entitlements and rights that are so preposterous, that the average person would not consider doing the same. At the same time, the average person will believe these claims, and treat these magicians as they portray themselves to be.
Average people will sometimes willingly give these people their possessions, or allow themselves to be bilked out of their valuables due to the fact that they honestly believe these magicians somehow deserve it, or have right to it. They will allow themselves to be bilked out of their valuables by these people, because they are in awe of these magicians, and will simply defer to them. These people are sometimes literally worshipped too.

Why? Because the magician had the sheer unadulterated audacity to lay claim to something, or some spectacular ability, while creating an illusion that backs up his claims. Some of the most successful magicians in the history of the world have been Royal Families, Kings, Popes, Presidents, Ministers, Evangelists, Politicians, Military Generals, Dictators, Famous Billionaires, Pirates, Corporate Tycoons, and oh "yes" Bankers..etc...
Simply because they "dared", and had the sheer audacity, to walk out into the sunlight, lay claim, and were able to create an illusion sufficient to fool the masses into believing it, some con-men have almost made themselves seem immortal to the common people...

This mortage melt down is a banking con-scheme. An illusion was created. Illusions that hurt other people, and separate them from their valuables are also known as fraud, unless they are perpetrated by someone powerful enough to rename the illusion something similar to "oops, it just happened somehow"....Mortages were carved into smaller chunks, bestowed with value that they did not possess, and sold to investors as something of value. They took "junk" rated loans, turned them into something they could sell, changed the rating to AAA valued financial vehicles, while knowing the whole time it was still just damn "junk".

Why was it junk in the first place? I'm so glad you asked....Due to the known financial strength of the borrower, or lack of financial strength in this case, it was known that large numbers of loans would default when the bankers jacked up the interest rates on the loans, which they absolutely intended to do when they made the loan. The fact that many mortages would collapse wasn't a "maybe" it was a certainty. Bankers know exactly how much money you have, your ability to pay, your outstanding debt, and your income. They can calculate your breaking point almost down to the dollar because they have all the numbers they need to do just exactly that. Since adding certain numbers, in certain sequences, always adds up the same, this was no surprise. The numbers in the math didn't suddenly learn some new tricks and pull a fast one on the bankers and catch them unaware. 2 + 2 = 4 when they made the loans, and 2 + 2 "still" = 4 when they jacked up the interest rates beyond a KNOWN ability to pay.

So when did all this start? Well...how far back do you wanna go?
This all started small and in the dark, many ages ago. Bestowing false value on a valueless object is the art and the deal of the banking business. It began when the gold brokers and dealers were able to talk people into storing their gold with the gold dealers. The gold dealers convinced them that someone might steal their gold, that it was too heavy to carry, and it would be safer and more convenient to to let the gold broker keep it for them for a small fee. The gold dealers then issued the "depositors" a receipt for their gold. Then "a" receipt became as "good as gold" because it was proof that you had the ability to pay. It became customary to divide "a" receipt into multiple smaller receipts, and these receipts could be signed over to other people as payment for goods and services.

Paper money was born, and thus gave the banking/lending (usury) business a whole new scope of possibilities. The gold dealer also had his own private stock of gold that he owned. Why not lend it out, for a fee? There was only so much gold to lend though, as the gold dealer only owned so much, so the fees that could be collected were limited to the stock of gold that the gold dealer himself owned.

Then the gold dealers had a eureka moment, and noticed that "all" the depositors never came demanding all their gold at once, and a nice stock of gold was usually on hand. So...in secret, the gold dealers started lending out depositors gold, and collecting fees on other peoples gold, without their knowledge. Now the fees were much larger, but still this wasn't enough. So the gold dealers decided to lend out "more" gold than he himself and his depositors both owned collectively. After all, nobody would ever know right? He kept enough gold on hand to pay depositors that trickled in demanding their gold, physiclly loaned out gold, and issued far more receipts to "borrowers" than he had gold in stock.

What a con, and what a racket huh? You loan out paper receipts, that claim there is gold to back them, you charge people fees for using this worthless paper, and you have nothing of your own at risk in the process. Its all done in secret, and nobody is the wiser. The sky is now the limit, and you can generate as many receipts as you like, charge fees for them all, become so wealthy and powerful it boggles the imagination, and you are doing practically nothing for your money, and have an incredibly small risk in ratio to what you gain.

Fractional reserve banking is born. "Fractional reserve banking" are the words, the "name" given to the now legal practice of loaning out far more than you have on deposit in the bank. It is the name given to a practice, that was once illegal, for a very good reason. The reason it was illegal is because it is a scam, that is dangerous for borrowers, when lenders become so greedy and predatory, that the whole scheme collapses, and the borrowers lose all their money, while the banker walks free with his unimaginable profits, that he made for doing??? What exactly? Think about it...

Fractional reserve banking is a legitimate sounding name, given to a most dirty and crooked business, so that people will not notice that right under their noses, in plain sight, they are being conned by the masters of the con game. So how did it become legal, if it is so bad? Some con-games are so successful that they make the con-men wealthy and powerful beyond belief. These con-men attain such power that they are able to influence the laws of society in practically any manner they see fit if it serves their interests.


When a con-game has been in existence long enough, and hidden in plain sight, the young will grow up to view it as a legitimate and normal practice. It will no longer be seen as a con. Why? Simple...someone "told" them it was just "business as usual" and that is exactly what it became to them as they grew up around it. Why is a chair a "chair"? Because someone "told" you it was a chair. Why do we walk on floors instead of ceilings? Because someone "named" the surface under our feet a "floor", and they "named" the roof above our head a "ceiling". It is only a word, and nothing more.

It could easily have been the reverse. Society could have named the surface under your feet a ceiling, and the roof above your head a floor. Had you grown up "walking" on a surface "named" a "ceiling", it would seem as natural as pissing on a rock on the river bank in the sunshine. You would not know the difference, because it would not make any difference. A bed could just as easily have been a wooden place to rest your ass, and a chair could have been the soft place where you lay down at night to sleep.

So the next time you feel all wet, and you assume its raining, take a look around, someone might just be pissing on your leg while they tell you its raining...hey...someone could have easily changed the names and definitions around ya know...hoping you wouldn't notice....



If you want to see one of the best video documentaries I have ever seen about what money really is, produced in simple easy to understand language, I highly suggest watching "The Money Masters". It is very long, very rich in detail and simple explanation. It covers this con-game from the beginning in its most primitive stages, to modern day times...You will come away with a new perspective, I promise ya...http://video.google.com/videoplay?docid ... 3209015812
The whole world is a stage...will somebody turn the lights on please?....I have to go bang my head against the wall for a while and assimilate....
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Postby antiaristo » Thu Sep 11, 2008 3:07 pm

.

antiaristo,

Wondered where you were. Nice to see you around.


Thank you, vigilant

Always enjoyed your take on the scene....


Just to be clear. My take on the scene is that I caught these same highly organized criminals back in 1994 when they tried to defraud me and two hundred others at the place I worked. My life since then has been "on the run".

I KNOW how powerful they are.*

When I saw how those same people had pulled the Lloyds fraud I tried to warn many persons in the US Government of what was coming.

I refer you to my two warnings to Janet Reno, then US Attorney General, in April and May of 2000.

http://www.rigorousintuition.ca/board/v ... 1668#81668

http://www.rigorousintuition.ca/board/v ... 1669#81669

The latter begins

Dear Ms Reno,
The sovereign people of America are in great danger from a malign foreign power. Some salient facts:


Couldn't be clearer than that, could I?


And antiaristo: thanks for the answers, and I want to ask some more in a future post.


You're welcome bks.
Fire away anytime.

And by the way, I'm not sure that "pyramid" is the best metaphor in this fraud.

This one is all about passing-off of bad paper as good. Passing-off CDOs as AAA bonds.

The equivalent archetype is counterfeiting.

Passing out as gold coins that are in fact 50 percent gold and 50 percent silver.

You will have heard of Gresham's Law:

Bad money drives out good.



That's what has happened in the mortgage securities market. It has frozen up because NOBODY knows which securities are pure gold, and which securities are only 50 percent gold.

So they have stopped buying. The "bad" money has driven the "good" money out of the marketplace.


And Freddie and Fannie are NOT the victims of a pyramid. What happened with these two is that they positively GORGED themselves on fake coins. They morphed into the two largest hedge funds in the world.

Look at their balance sheets.
They are stuffed full with COMMERCIAL mortgage backed securities, with ALT A backed securities and with SUBPRIME backed securities.

ALL OF WHICH LIE OUTSIDE OF THEIR CHARTERED MISSION.



* That's why I'm backing Putin. :) 8)
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Postby vigilant » Thu Sep 11, 2008 3:16 pm

I agree that it does not fit the literal definition of a pyramid scheme. But considering how the players have themelves arranged in the deal I thought the metaphor was appropriate. It was sort of like a game of musical chairs...

Last man holding the bogus paper when the music stops, gets screwed...

And the people that created and distributed the bad paper made damn sure they were in enough of a protected position when the music stopped (bailout), or werent holding the bogus paper themselves....

So in a way, the people at the top that started the scam, suckered the people below them out of their money, which is the basic premise of a pyramid scheme when it collapses, but admittedly doesn't work exactly like this banking fraud did...
The whole world is a stage...will somebody turn the lights on please?....I have to go bang my head against the wall for a while and assimilate....
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Postby JD » Thu Sep 11, 2008 5:01 pm

I really liked the OP, but after reading the article the OP was based on think its author is putting out a message for all to hear.

The reality is that investors should withhold their faith in the government officials who regulate our financial markets. That's not cynicism. In the parlance of securities law, it's a risk-factor disclosure.

The moral of this story: You're on your own, folks, and there's more where this came from.


He's saying the markets are f#cked, and head for the hills. Something that many here would agree to. I don't think he's defending any big money folks, gov't, regulatory agencies, accounting firms, etc.

Isn't he saying the system broke very badly, and that there is nothing for investors to do......

and there's more where this came from


and to increase their vigilence as more pain is coming.......
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Postby vigilant » Thu Sep 11, 2008 5:24 pm

I considered that he might be speaking in such a manner myself, but I don't believe it. I doubt the wall street type is the bulk of his reader base, and he isn't telling them anything at all they don't already know anyway. The public that reads this will walk away with the wrong impression, which I believe is intentional. They don't understand the market, and they need clarification. They grew up in a sound bite world, and the sound bites he left in their minds is harmful, and not helpful.

Its like a message that says, "Due to some accounting irregularities, you might have gotten punked, but its over now, nothing to see, move along, keep your eyes open, and there is nobody accountable or responsible for it, and besides, its still all your own fault."

Coming from an organization in the know, that people with little or no market savvy read and listen to, it begs for more clarification, and mostly, it should define "how" and "why" and by "whom" exactly this was done and for "what reason" and "how" they "have benefitted" and what should "be done" to get peoples money back and "what specific crimes" were committed "by whom" and what the punishment is if they are brought to justice. This is usually avoided by the mainstream bullhorn, and some sort of passive admission that something is a little out of kilter is made, but move along, nothing else to see because this "just happened somehow" and its a damn shame that it did.

His message seems coy to me. He is saying that the system is screwed, and that there are some "irregularities" happening. He stops completely and totally short of spelling them out. He reduced the whole thing to a situation that doesn't seem like what it truly is. Trillions are being stolen, and its not over, its only just begun.
The whole world is a stage...will somebody turn the lights on please?....I have to go bang my head against the wall for a while and assimilate....
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Agreed But.....

Postby JD » Thu Sep 11, 2008 5:52 pm

I hear what you are saying, and certainly agree with much of.

I'm used to financial types and their doublespeak. I read this as clear "get the hell out of Dodge". They always couch things so if they are wrong they have a fallback position. So what you look for is the "unusual" or the "takeaway". By putting his unusual position that investors are screwed as the system is wrecked and more wrecks are coming so leave the market at the end of his piece that's the takeaway I get.

Yes, I wish such folks were more transperent. I posted a piece that links to David Coxe; now he speaks clearly and his mind. No guessing and doublespeak going on their!

I love how Coxe pretty much says that all the folks in his world know what is going on (with respect to market manipulation); and aren't really all that surprised by it.

To hear Donald Coxe tell it, the commodity selloff ripping through Canada's stock market is no accident. It is the result of a deliberate, brilliantly executed plan hatched at the highest levels of the U.S. Federal Reserve and Treasury.

Mr. Coxe is no paranoid conspiracy theorist. As the chairman and chief strategist of Harris Investment Management in Chicago, he is one of the most respected investment authorities in North America. He also happens to have lost about 10 per cent of his personal wealth in the commodity rout, which came at the worst possible time for his Coxe Commodity Strategy Fund that started trading in June.

“This has done more damage to my personal wealth than anything in the last 20 years,” he said in an interview yesterday. But he has too much respect for how the U.S. authorities engineered the collapse in commodities – a move he said was necessary to shore up the global financial system – to be bitter.

“My attitude is, goddamn it, they're good … it was brilliant.”


Full article
www.reportonbusiness.com/servlet/story/RTGAM.20080909.wheinzl0910/BNStory/SpecialEvents2/home


Coxe's weekly broadcast http://events.startcast.com/events/199/B0003/code/eventframe.asp
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