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President Obama met with the top Brokedick Bank CEO’s today. And the talking points about America’s next trillion dollar suppository… a.k.a. the “Bad Bank” plan are now out.

My friends, it’s that time again…

Bend over, grab your ankles, and assume the position. Because here’s how the “Bad Bank” plan is going to work:

First, the Fed is going to create more money out of thin air. Money which you, your children, and your grandchildren, will pay hundreds of billions of dollars of interest upon. Interest paid via higher taxes, and payable to the globalist elite banking cartel, which owns the not-so-federal, Federal Reserve.

Next, the thieving, lying bastards are going to take your tax dollars and buy the toxic paper assets from the major Wall Street banks. Toxic paper that they’ve been lying about the value of, and trying to hide off their balance sheets.

Now the Government doesn’t want to take a loss on behalf of the sheep, err taxpayers; so ostensibly, they try to pay realistic, fair market value for this toilet paper.

But, the banks can’t sell it for “realistic, fair value” because if they did, it would be at prices considerably less than what they are carrying similar assets on their balance sheet for, and it would trigger write downs, and either another round of capital raises, or insolvency.

So the only way this latest charade can work, is if the Government pays a ridiculously high price for these assets.

Yet another trillion dollars down an endless black hole.

…thank you sir, may I have another!

Oh, and I almost forgot. You’re probably wondering what that “Drug Bank” business is all about? Well, it seems the Brokedick Banks ran through the bailout money pretty fast, so they had to resort to a business model they’ve actually used many times in the past, that of “The Drug Bank.”

Who you gonna call when the SWF’s and “The Prince” won’t give you any more money…

The Drug Cartels!

http://www.iht.com/articles/reuters/2009/01/25/europe/OUKWD-UK-FINANCIAL-UN-DRUGS.php

“Illicit Drug Money Kept Banking System Afloat”

Reuters
Published: January 25, 2009

VIENNA: The United Nations’ crime and drug watchdog has indications that money made in illicit drug trade has been used to keep banks afloat in the global financial crisis, its head was quoted as saying on Sunday.

Vienna-based UNODC Executive Director Antonio Maria Costa said in an interview released by Austrian weekly Profil that drug money often became the only available capital when the crisis spiraled out of control last year.

“In many instances, drug money is currently the only liquid investment capital,” Costa was quoted as saying by Profil. “In the second half of 2008, liquidity was the banking system’s main problem and hence liquid capital became an important factor.”

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Banks going to the Drug Cartels for cash?

Wouldn’t be the first time!

Check out this expose:

http://www.narconews.com/Issue40/article1678.html

Is that the NYSE’s Dick Grasso?

And you wondered why they paid him a hundred million bucks?!?!

“In June of 1999, Richard Grasso, Chairman of the New York stock exchange, went to Colombia to visit a Revolutionary Armed Forces of Colombia (FARC) Commander to encourage him to reinvest in the U.S. financial system. At the time of his visit, the General Accounting Office reported on FARC’s growing influence in the Colombian cocaine market.”

Let’s see now…

We’ve had private capital infusions from Sovereign Wealth Funds, Saudi Princes, and Drug Cartels.

We’ve had Congress called to a secret meeting behind closed doors, and threatened with Martial Law.

We’ve had TARP and an alphabet soup of bait & switch, blank check bailout vehicles.

And now we’re going to try a “Bad Bank.”

…a bad bank.

Must be something about the name.

I don’t know about how you feel, but after reading about John Thain’s $35,115.00 toilet, I’m pissed.

And you know what? What really pisses me off the most about this entire thing, is that the man who is perhaps most responsible for this entire debacle, is going going to escape with his reputation, his fortune, and his freedom intact.

And that man is Hank Paulson.

Hank Paulson and Robert Rubin are the two main architects of this Ponzi scheme. They provided the framework and the design, and Alan Greenspan provided the fuel.

Let’s wind back the clock for a moment. And let’s go back to what I believe are the two pivotal turning points of this crisis.

The first turning point, was the passing of the Gramm-Leach-Bliley Financial Services Modernization Act, on November 12th, 1999.

This occurred when Robert Rubin, who was President Bill Clinton’s Treasury Secretary, engineered the repeal of key parts of the Glass-Steagall Act.

The Glass-Steagall Act had prohibited a bank from offering investment, commercial banking, and insurance services.

The passing of the the Gramm-Leach-Bliley Financial Services Modernization Act, opened the door for banks like Citibank to become financial conglomerates.

Of note: Two days after the passage of Gramm-Leach-Bliley, Mr. Robert Rubin accepted a very highly paid position with…drum roll please… Citibank!

Our second major turning point also involved a Goldman Sach’s alumnus (imagine that!).

On April 28, 2004, the SEC handed the keys to the US financial system over to Hank Paulson and the Wall Street Investment Banks.

Audio of the meeting:

At the time, Mr. Hank Paulson was the CEO of Goldman Sach’s. And he spearheaded the drive to get the SEC to give the major Wall Street Investment Banks an exemption from their capital requirements and leverage controls.

What the SEC did (at Paulson’s behest) was to allow the Investment Banks to increase their leverage from 12:1, up to 30:1, even 40:1, and later 50:1.

And as insane as that seems, it get’s “insaner!”

Not only did they allow the Investment Banks to quadruple their leverage (and exponentially increase systemic risk) but they also allowed the Investment Banks to basically “supervise themselves!”

New York Times Article:

Paulson’s Position Paper to the SEC:

Our financial system could easily have handled the losses caused by the collapse of Greenspan’s bubble, and the problems caused by Rubin, with Gramm-Leach-Bliley.

But what it couldn’t handle - was the losses from Hank Paulson’s 30-40-50:1 leverage.

Who could ever have anticipated the irony, that one day the man that is perhaps most responsible for creating the architecture that led to the collapse of the modern financial system, would be put in charge of rebuilding it?

And be trusted with a blank check for doing so?

Greenspan’s hubris, Rubin’s greed, and Hank Paulson’s leverage.

That’s what killed Wall Street.

And now they’re going to try to fix it all, with a “bad bank.”

And why would we expect anything less?

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