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| Fed Bails Out Big Money! Jan. 11, 2008 Nobody can negate a legitimate contract in these United States - not Bush, not the Federal Reserve, not Congress and not the Supreme Court - but the key word is “legitimate”! When money lenders pushed all those low interest, no qualifying, Adjustable Rate Mortgages (ARMs) at the uninformed public, they created legitimate contracts - even if the signers didn’t totally understand what would happen to their payments when the rate increased. Unless it can be proven that the lenders intended and did “defraud” the people, no agency of government can cancel that indebtedness short of an arbitrated declaration of bankruptcy. There is no doubt that people who signed for those ARMs would love to be bailed out - they don’t want to lose their homes! Nobody should doubt that the sub-prime lenders would love to be bailed out since many of those mortgages are going into default. Enter the big money people - they buy the mortgages at extreme discounts because they all look like bad paper. The national economy is in crisis! Enter the Federal government and the Federal Reserve: Order that the interest rates on those mortgages be kept at the initial rate and the Fed will pick up the difference in payments (the extra interest) and pay it to the big money people who bought all those mortgages. Big profits and the taxpayers will pay for it! This isn’t the first time this trick has been played - and it isn’t over yet! We had a farm loan problem which was created when money was made available to farmers to expand their farms (circa Jimmy Carter) and a crop problem (Circa Ronald Reagan). The farms were eventually lost when the farmers couldn’t repay the loans - so the notes were purchased by big money people who foreclosed (circa George H.W. Bush) and then sold them to Canadian firms via the U.S. Canada Free Trade Agreement. Our nation has had one financial debacle after another. There was the time when savings and loan companies were given the freedom to invest in almost anything and that resulted in a gigantic economic crash - and the big money people stepped in and bought them out. The little investors in the S&Ls were the losers. We had a fuel crisis clear back in 1972 and our intelligent government changed the rules and started rewarding the oil producers by allowing them to tie local production and costs into a program that encouraged “importing” oil and charging the same prices for U.S. produced oil that OPEC charged. The big money people won again! Currently the banks are being allowed to get into the stock and insurance underwriting business - guess where that will end up! BE FOREWARNED: The offering of Credit Cards to just about anyone who will take one is the next area in which the big money people will profit and America will lose. When the credit cards max-out and the people cannot pay because abusive interest rates keep the debt up - and they are hungry and virtually homeless - the big money people will buy all those debts (at 90 percent discount) and then the Federal government will bail them out by underwriting the debt. America loses again - only this time it will be our entire economy! The question now is: Who are those “big money people” who profit from all this economic turmoil? |