Posted by: angrymob101 | April 24, 2009

Wall Street’s 1929 Scams Return in Geithner Plan

With Trillions of dollars getting tossed around in these “bailouts”, It’s a good thing we have the super-smart and 100% honorable President Obama. Surely he will hire trustworthy people to manage our money, right?

Well, as it turns out, Obama’s Bailout team may not be as noble as we’d like. First off, Geithner quietly hired a Goldman Sachs Lobbyist to be his Chief of Staff. That is a pure, unadulterated, Bull$hit. Obama promised to fight lobbyists… yet he’s hired a Banker lobbyist to be right in the middle of the Trillion dollar bailout program. Attn: White House Press Corp: why doesn’t someone call him on that?! (ie on Apr 29th during his primetime speech!)

Even worse, Geithner has come up with the wonderful “toxic assest buyback” program, which is not only open to fraud, it’s like it was designed for fraud. Gee, I wonder if all those Bankers turn Treasury Employees had a hand in writing this plan, scam.

Wall Street’s 1929 Scams Return in Geithner Plan. For Example:

Say a bank and a private- equity firm both agree that a group of the bank’s loans is worth $600 million. The private-equity firm, however, agrees to overpay for the loans and bid $840 million at auction. The private-equity firm invests $60 million, which the government matches with $60 million of TARP money, and which is leveraged by a $720 million loan guaranteed by the Federal Deposit Insurance Corp.

After the auction, the bank secretly pays the investor a $120 million kickback, or half the difference between the auction price and the real value. Even if the private-equity firm’s $60 million investment is wiped out, it still would get a $60 million profit because of the kickback. Meanwhile, the bank would make a $120 million profit, at taxpayer expense.

bailout is bsGee, do you think this could work with Congress too? They give a bank $25 billion “bailout” cash, and the bank gives the “Representatives” $1 million each… everybody wins!

But surely the Obama-Goldman Bailout team will have tough oversight, right?
Government Watchdogs Warn of Lack of Oversight For Trillions in President’s New Spending Programs

Meanwhile, back on mainstreet…. Republicans bash the liberals that are ruining the country, and Democrats blast the Republicans that ruined the country… and nobody is paying attention while the treasury is looted by the real Pirates in DC.

It is time for Americans to unite. Quit bickering with each other and turn your attention towards the real criminals: Wall St and Capitol Hill.

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