Article Image
News Link • Federal Reserve

Mr. Magoo: Isn't Beelzebub Calling You Yet?

In point of fact this game is and has been all about is lying about capital adequacy. That is, what corporations (including banks) want is to be able to create and use effectively-infinite amounts of leverage with no evidence or proof that they will be able to perform against their obligations. All these "sophisticated" management systems are claimed to have broken down but the fact of the matter is that the entire point of these systems was to be able to put on infinite risk with no ability to cash the checks being written by these same institutions. It is not an accident when a firm like Fannie and Freddie winds up with leverage of 200:1, nor is it an accident when AIG has $500 billion of derivatives outstanding with essentially zero capital behind them. Magoo claims that "Banking regulation has been responsibly written." Oh really? IndyMac backdating deposits was "responsible"? Banks lying about asset values is "responsible"? The Fed basically stealing $100 billion of taxpayer money and propping up a company (AIG) that had written derivatives without any cash behind it with full knowledge of their counterparties is "responsible"? This isn't "regulation" it is intentional theft and looting.

Join us on our Social Networks:


Share this page with your friends on your favorite social network:

Attorney For Freedom