Post new economy related articles here.

[EYES WIDE OPEN]

This is a place to post any information relevent to econmic events.

Specifically, any websites with econmical news stories.

The idea is to keep all this in one place & make this thread a place everyone can check regularly for news updates on the subjects above. (rather than multiple threads all over the place)

Disscussion of this subject can take place in other threads. This thread is only for articles & links only.

[murnut]

UP AND DOWN WALL STREET

Going for Broke

By ALAN ABELSON
Uncle Sam plans to spend like there's no tomorrow to cure what ails the credit markets and rev up investors. Will it work?

BABY, IT'S COLD OUT THERE. So let's toss another billion on the fire.

What's that make it? Well, let's see: $29 billion for Bear Stearns, somewhere between $1 billion and $100 billion each for Fannie and Freddie (a nice narrow range), $85 billion for AIG, a couple of hundred billion to keep stray banks, brokers and their errant kin from asphyxiating themselves by swallowing toxic paper. And then there's the proposed reincarnation of the Resolution Trust Corp., which all by itself may mean shelling out $800 billion, perhaps even as much as $1 trillion.

While we're at it, we might as well include the $400 billion with which the Paulson-Bernanke grand plan envisages endowing the Federal Deposit Insurance Corp. so it can insure money-market funds.

But, please, understand those mind-boggling sums in no way, shape or form are to be construed as designed to aid and abet a bailout. Instead, they are merely the essential ingredients of an "intervention," or, if you prefer, a "rescue" -- just about anything, in other words, that's semantically sweeter than bailout, with its ugly connotation of a sinking ship.

Besides, we have it on the best authority that none of this largess will cost the taxpayer a cent over the long run, which, if nothing else, speaks volumes about what constitutes the best authority these days. The reasoning is simple (or perhaps simple-minded is more accurate), namely that deep-pockets Uncle Sam can sell off the assets of the foundering companies on which he has bestowed that bounty and come out whole.

Surely, they jest. For a heap of those so-called assets might easily be confused with liabilities since even those that can be sold will likely fetch a feeble fraction of what their possessors now claim they're worth.


This is not to say that until the powers-that-be pounded the panic button last week, the billions they had already thrown at the problem as well as taking a big step further and making the wretched companies soaking up those billion de facto vassals of the government were completely in vain. They undeniably had an instant impact. Unfortunately, an instant was about as long as the impact lasted, and it failed miserably to becalm the frantic credit markets or rekindle investor confidence.

The sad truth is that just about every one of Messrs. Paulson and Bernanke's previous brainstorms -- and they seemed to come with increasing frequency as Hank and Ben's agitation mounted -- touched off a brief spasm of exhilaration among investors, only to evaporate in very short order as the credit crisis resolutely morphed into a credit calamity. Or, to change the metaphor, what had been a slow-motion train wreck picked up demonic speed.




That little chart that adorns these gray columns offers an eloquent description of how bad things had gotten until the clouds parted and the sun finally came out as the week wore down. It depicts the yield on three-month Treasury bills going back to 1930. On last Wednesday, investors were so gripped with fear and desperate for a haven that they poured into the bills even though the yield was nonexistent. In effect, they were willing to pay the government for keeping their money safe. As a glance at the chart shows, that hasn't happened since the Depression.


Then, everything changed, at least for now. And the soaring rise in the stock market that began Thursday afternoon and extended through the final bell on Friday had Ben and Hank whooping with joy, exchanging high fives and just venting their pleasure with cat-that-swallowed-the-canary smiles, a welcome change from the funereal faces they had donned for the past few months.

While we're in a generous mood, we might as well add Christopher Cox to the cheerful circle of celebrants. The SEC chief has been the target of a steady stream of slings and arrows directed his way by John McCain, which rather than nailing Cox's inadequacies (and they're bountiful) once again demonstrated that McCain and his advisers haven't much of a clue how markets work.

Cox, in any case, deserves some of the credit for the smashing rally that boosted the Dow comfortably nearly 800 points in two sessions. For he proudly announced a ban on shorting 799 financial stocks and sparked talk of banning short selling entirely, and that scared the thingyens out of the shorts who en masse rushed to cover. The resulting buying burst, we haven't a scintilla of doubt, played a significant role in the great market lift-off.

Frankly, it seems to us, Cox, in taking out after the shorts -- whom nobody loves except their immediate families (and we're not even sure about them) -- was more interested in covering his derrière than in protecting investors. As an early-warning sounder, keeping markets reasonably honest and offering a way to hedge against the inevitable mistakes or bad luck that investors are prey to -- short selling serves a valuable function, and messing with it is apt to yield a lot more harm than good.

And we say that fully aware short selling has its quota of bad guys who do wicked things, but also aware that there are rules and regulations aplenty to curb untoward practices, if somebody would only enforce them.

But then, if regulators hadn't been asleep, banks probably would have had real trouble finding ways to go belly-up, those innovative weapons of mass destruction called derivatives might have been defused long before they blew up, and those speculative bubbles, as in housing, might not have made the Guinness Book of Records for sheer size.

Just think of all the fun we'd have missed.

WILL THE GRAND PLAN WORK? Will piling on all those billions on billions atop a budget deficit that's already a cinch to shoot up to over half a trillion next fiscal year allow the badly winded economy to start a sustainable recovery?

Ben, remember, vowed to use helicopters to drop money from the sky, but now he seems to be gearing up to use 747s. Can the Fed run its printing machine full-time to churn out all those billions without a substantial infusion from increasingly pinched taxpayers? And won't priming the pump like mad drive the dollar back into the pits and force interest rates higher?

The plan, in all its extravagance, seems to have been thrown together on the fly, and once Congress gets a whack at it in the waning days before the lawmakers scurry off to the hustings, it may bear only passing resemblance, for better but probably for worse, to Paulson and Bernanke's handiwork.

Obviously, the unknowns greatly outweigh the knowns, which make those and myriad other questions tough or downright impossible to answer.

We're willing to concede that some forceful action was necessary, if only so the Fed can pay penance for its critical part in creating the incredible credit-cum-housing disaster.

As Merrill Lynch's David Rosenberg observes, the fact that the government is suddenly so aggressive in coming to grips with an epic credit collapse is eloquent testimony to how the Fed and the Treasury "have consistently underestimated the severity of that collapse from the get-go."

He reminds us, moreover, that the original Resolution Trust Corp. was strictly about buying bad mortgages. So he wonders whether the new incarnation will also undertake the purchase of Level 3 assets, whose value is extremely problematic and, in any case, more than a little difficult to gauge, and which are a sizable and not particularly desirable presence in many banks' portfolios. And will the new RTC also buy credit-card debt, commercial real estate, leveraged loans "or the other mountains of bad debts out there?"

David cautions that the entire credit collapse to date has "reflected the unwind of the largest bubble of all time -- residential real estate. Meanwhile, a consumer-led recession is taking hold this very quarter for the first time in 17 years, and every consumer recession in the past was followed by a negative credit cycle of its own."

As to the euphoric market reaction, he thinks it's a bit much. In their stampede to buy, investors seem to be ignoring the depressing fact that what prompted such drastic action was the sorry state of the financial system, which isn't likely to change overnight no matter how vigorous the government exertion.

After the RTC was set up in 1989, he notes, it took two years for the economy to turn around, three years for housing to recover and a year for the stock market to bottom.

So what's the rush?

[murnut]

Bush Administration Seeks "Dictatorial Power"

Bloomberg is reporting Treasury Seeks Authority to Buy Mortgages Unchecked by Courts.

The Bush administration sought unchecked power from Congress to buy $700 billion in bad mortgage investments from financial companies in what would be an unprecedented government intrusion into the markets.

"He's asking for a huge amount of power," said Nouriel Roubini, an economist at New York University. "He's saying, `Trust me, I'm going to do it right if you give me absolute control.' This is not a monarchy."

Paulson is seeking an expansion of federal influence over markets that hasn't been seen since the Great Depression, said Charles Geisst, author of "100 Years of Wall Street" and a finance professor at Manhattan College in New York.

"This is going to be a big package because it's a big problem," Bush said following a meeting with Colombian President Alvaro Uribe at the White House. "We need to get this done quickly, and the cleaner the better."

Democratic presidential nominee Barack Obama said in a radio address that he "fully supports" Paulson and Fed Chairman Ben S. Bernanke's efforts to stabilize the financial system. The plan, however, should benefit both main street and Wall Street, he said.

Republican Presidential nominee John McCain "looks forward" to reviewing the proposal while focusing at least in part on "minimizing the burden on the taxpayer," said Jill Hazelbaker, communications director for the McCain campaign.

The Bush administration seeks "dictatorial power unreviewable by the third branch of government, the courts, to try to resolve the crisis," said Frank Razzano, a former assistant chief trial attorney at the Securities and Exchange Commission now at Pepper Hamilton LLP in Washington. "We are taking a huge leap of faith."

Unreviewable Dictatorial Power

Notice how everyone wants to rush this through even though it is the biggest financial crisis in history. One might think that something this big should be carefully considered but no... Bush says: "This is going to be a big package because it's a big problem" and "We need to get this done quickly and the cleaner the better."

It seems the bigger the problem the quicker and cleaner it can be fixed. Indeed Congress will argue more over the cost of toilet seats than they will over this $700 billion (and counting) bailout.

Democrats Want To Expand The Bailout

"We're going to be buying up a lot of mortgage paper," said House Financial Services Committee Chairman Barney Frank, a Massachusetts Democrat. "Between Fannie Mae and Freddie now owned by the federal government and the mortgage paper we'll be acquiring here" and the Federal Deposit Insurance Corp. running failed bank IndyMac Bancorp Inc., "we should now be able substantially to reduce foreclosures," he said.

My Comment: Barney Frank is an incompetent socialist fool. Buying mortgages in and of itself will not prevent a single foreclosure. All buying mortgages will do is bail out the banks holding those mortgages. And one thing you can be most certain of is that it will be a selective bailout with no oversight as to who gets bailed out or why.

The Treasury plans to hire asset managers to purchase the assets through so-called reverse auctions, seeking the lowest prices, one of the people said. Congress will need to raise the limit for the federal debt to allow the government to borrow enough to fund the program, the person said.

Senator Richard Shelby, an Alabama Republican who has advocated that markets should be allowed to penalize bad bets, warned that bailout could saddle taxpayers with large debts.

"This could be the biggest bailout in the history of the country and could ultimately cost $500 billion to $1 trillion," Shelby, the ranking Republican on the Senate Banking Committee, said in a Bloomberg Television interview today. "Congress is not going to rubber stamp something."

My Comment: The odds of Congress not rubber stamping this are very slim.

Senator Christopher Dodd, the Banking Committee chairman, said the plan's framers should consider the full debt load of U.S. consumers, possibly including credit cards.

My Comment: Hells bells why not? Let's throw in credit cards, auto loans, boats, and casino debts? Why stop at credit cards and housing? Let's just have the government guarantee every debt in the country.

The temporary plan is likely to include a "second stimulus" proposal with infrastructure funds, low-income energy aid and Medicaid assistance, Frank said.

My Comment: Why stop at two? Why not four? Hell, let's just give everyone $1,000,000 and be done with it.

Officials devising the plan "need to make sure that they keep that hard-headed approach so that people are not profiting off this," said Martin Baily, who was chairman of the Council of Economic Advisers under Democratic President Bill Clinton.

My Comment: Hard headed approach? What are these clowns smoking? Paulson asks for $700 billion and idiots like Frank and Dodd are clamoring for more already.

"To some extent that's unavoidable," said Baily, now a senior fellow at the Brookings Institution in Washington. "Anytime you do something like this you have the problem of bailing people out and creating moral hazard. That's the reason why you hold your nose. But it's better than the alternative."

Perfectly Avoidable

Martin Baily is another fool. This was perfectly avoidable. All we had to do we eliminate the Fed and fractional reserve lending. And that is what still needs to be done.

Instead Congress is lining up to give "Unreviewable Dictatorial Power"to the Treasury while increasing the size of the already ridiculous proposal.

Contact Your Senator Today!

It's time to contact your senator. Here is contact information for Senators of the 110th Congress.

Phone or Email your Senators today. Tell them in your own words

* Urge your senator to Filibuster any bailout legislation.
* Emphatically state you do not want a bailout of any kind for anyone.
* No Dictatorial power for Paulson or Bernanke
* Taxpayers should not have to bail out banks making bad loans
* Tell them that "The Fed" and Paulson are systemic risk".


Email AND Phone Senators Shelby, Bunning, Kyle, Hagel

Whether Senator Shelby is your Senator or not, flood him with calls and emails asking for a filibuster and to stop the insanity. Senators Shelby, Bunning, and Kyle might be sympathetic to the cause, based on past statements. I am taking a stab at Hagel.

Please email and phone the following. Specifically ask for a filibuster and tell them to vote no to any bailout.

Shelby, Richard C.- (R - AL)
110 HART SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-5744
E-mail: senator@shelby.senate.gov

Bunning, Jim- (R - KY)
316 HART SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-4343
Web Form: http://bunning.senate.gov/public/ind...ct.ContactForm

Kyl, Jon- (R - AZ)
730 HART SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-4521
Web Form: kyl.senate.gov/contact.cfm

Hagel, Chuck (R - NE)
248 RUSSELL SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-4224
Web Form: hagel.senate.gov/public/index.cfm?FuseAction=Contact.Home

Please email and phone both of your senators as well.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

[EYES WIDE OPEN]

great article mur!

[EYES WIDE OPEN]

Can this thread be pinned maybe?

[EYES WIDE OPEN]

Goldman, Morgan Stanley flee into Fed's arms.

WASHINGTON (Reuters) - Goldman Sachs and Morgan Stanley sought shelter with the Federal Reserve to survive a financial storm that destroyed their rivals, effectively killing Wall Street's investment banking model of the past two decades.


The move is Washington's latest effort to restore calm to chaotic markets and follows frantic talks between the Bush administration and Congress on a $700 billion bailout to prevent the crisis from pushing the economy into severe recession.

By agreeing to much tighter Fed regulation as bank holding companies, Goldman Sachs Group Inc <GS.N> and Morgan Stanley <MS.N> moved to avoid the fate of rivals that either collapsed or were taken over in the worst financial crisis to sweep Wall Street since the Great Depression.

U.S. stock futures were indicating a lower opening on Wall Street, while European stocks edged higher, the dollar fell and U.S. Treasury debt prices edged up as investors played it safe before the mechanics of the plan are worked out.

"We need to see more details from the rescue package. What is missing is the price the U.S. authorities are going to pay for the toxic assets," said Heino Ruland, analyst at FrankfurtFinanz.

Goldman and Morgan Stanley shares traded in Frankfurt down around 6 percent.

MORE HERE : http://business.itbusinessnet.com/ar....jsp?id=524756

remember, that the fed is actually controlled by private bankers............

[Lance]

I find these couple of sites rather useful and have actually made money following their advice...
http://www.urbansurvival.com/week.htm
http://eaglesup.com/

Both are updated early in the am, Texas and Arizona times...

[EYES WIDE OPEN]

THIS IS AN AMAZING ARTICLE & GREAT WEBSITE :

http://www.worldreports.org/news/174...lsons_treasury


THE LATEST FALSE PROSPECTUS FROM 'PAULSON'S' TREASURY
DECEITFUL TRANSFER OF BANK ASSETS TO BUYER WITHOUT RECOURSE
Tuesday 23 September 2008 03:30
'PAULSON' SCHEME TEARS UP THE U.S. CONSTITUTION, LEGITIMISING FINANCIAL FRAUD

IT'S AS THOUGH THE ORGANIZED CRIME CONTROL ACT OF 1970 DOESN'T EXIST

A U.S. 'COUP D'ETAT BY INSTALLMENTS', LIKE GERMANY IN 1933

London, 22nd September 2008:

GREENSPAN’S $14 TRILLION REPORTED LIE TO CNBC’S LEESMAN ON 22ND SEPTEMBER:
US sources inform the Editor that the CNBC’s financial reporter Steve Leesman stated that Greenspan told him that on Thursday 18th September 2008, the United States ‘almost went bankrupt because there was NO CASH available’.

What Greenspan did NOT tell the CNBC’s Leesman is that Citibank currently holds $14 trillion which Greenspan, ‘Paulson’, Cheney, Bush Sr., Bush Jr., Clinton 42, Hillary Clinton, Robert Rubin and other organised crime operatives posturing as responsible holders of high office, have hijacked and systematically prevented from being mobilised for the Settlements.

The funds, sent from abroad, have been resident in Citibank precisely to finance the Settlements.

FACT: In June and July 2007, we reported that Greenspan had been arrested. This information was not only posted here, but was publicised in International Currency Review. The Editor has on his desk an email from the most senior Trustee level dated 25th June 2007 and timed at 01:38 am UK time, containing the following:

‘Christopher, I was able to get confirmation of Greenspan’s arrest. However, my ‘Group of Eight’ intelligence said he is under house arrest, not in jail’.

When the Editor read this email over the transatlantic line on 22nd September 2008 to a contact, he was told: ‘I can confirm the accuracy of that statement’.

• Of course, the US ‘mainstream media’ never reported that Greenspan was arrested, and have continued to regard this criminal operative as a guru whose every word must be revered and treated as holy writ. This places them at something of a disadvantage when it comes to assessing the accuracy of his statements. $14 trillion is a lot of liquidity, even by Greenspan’s lying standards.


ANOTHER FRAUDULENT PROSPECTUS FROM THE KING OF OFFICIAL FRAUDULENT FINANCE:
The following summary analysis of the so-called 'unprecedented rescue plan' unveiled by the US Government to mindless global applause on Sunday 21st September 2008, represents a fraudulent prospectus that exploits and perpetuates the very skulduggery that is responsible for the crisis.

The skulduggery in question revolves around the fact that when bank loans are securitised and sold on to buyers, usually foreigners who haven't done adequate due diligence, the sale qualifies as a sale of assets. The seller (the bank) retains NO RISK OF LOSS from the transfer of these assets and has NO OBLIGATION TO THE BUYER if:

• The borrowers of the original loans default on their payments; or:

• Changes in market values of the on-sold securities take place.

In other words, the risk is transferred from the bank to the owner of the securities, and if the borrower defaults, it's not the bank's problem, it's the problem of the owner of the securities.

SEE OUR ARTICLE DATED 26 DECEMBER 2007 ON THE FRAUD UNDERLYING FORECLOSURES:
There is no difference, in principle, between this mechanism and the fraud model employed to ransack the mortgage sector. In that context, the bank sold the mortgage either directly or else repackaged as a securitised pool of assets, to the Government-Sponsored Enterprise (GSE) of choice (Freddie Mac or Fannie Mae), and walked away clear having alienated the contract and leaving the so-called 'owner' of the mortgage without a valid contract (1).

At foreclosure, those mortgage-holders who have had the presence of mind to notify the Court beforehand that they have requested the original contract from the bank and have been unable to obtain it in time for the hearing (because the bank has sold the contract on to the corrupt GSE in question), have been 'heard' by the Court and have usually been told that they can hold onto their property and that the foreclosure is null and void. For further details, please refer to our report dated 26th December 2007 entitled: 'The 'subprime' 'slide' that masks fraudulent finance' [Archive].

THE LATEST 'STICKING PLASTER' FRAUD FLOATED BY THE U.S. TREASURY:
As promulgated for public consumption, the latest of these proposals which the cornered 'brains' in the Treasury and elsewhere have been coming up with on an almost daily basis as they seek to establish which sticking plaster has the strongest holding power, the latest 'rescue' proposal that the US Government is trying to ram through the Congress would allow the Treasury to buy up 'toxic' debts from recalcitrant financial institutions, including US branches of foreign banks, to 'try to stem the worst financial crisis since the Great Depression' according to The Daily Telegraph. Like the entire so-called 'mainstream' media, this newspaper has STILL failed to grasp that this crisis arises NOT from a failure of the system, but because of rampant fraudulent finance and the abject (we would say co-conspiratorial) failure of the US Regulators to do their job.

None of the plasters have come up to 'scratch' so far because all seek to bypass the on-the-books Settlements that the US Treasury Secretary and his accomplices have been blocking in order to try to avoid incriminating themselves more than they are already incriminated.

Since fraudulent finance is what these 'brains' specialise in, we should not be surprised that the so-called 'rescue' plan exploits the fraud outlined above, with the variation that the 'toxic' securitised assets that will be repackaged for onward sale again, will be given some falsely determined value created out of thin air and justified by an official US Government imprimatur.

The underlying asset will remain trash, but the US Government will say it isn't trash.

INSTITUTIONS WILL WALK AWAY FROM THE SCENES OF THEIR CRIMES:
Meanwhile the institutions, which have been engaged in fraudulent finance operations and are therefore no different from criminal enterprises, will get to walk away from the scenes of their crimes with a peculiar sum of $700 billion, which just happens to match the liabilities in a certain Virginia bank that cannot be repackaged in this manner; and the money will wind up in the pockets of the official and institutional perpetrators of this latest variation of the fraud outlined above.

PROPOSED LEGISLATION AMOUNTS TO A DE FACTO COUP D'ETAT:
To make matters far worse, the legislation that is now being rammed down the Congress's throat, will amount to a coup d'etat reminiscent of the 'coup d'etat by installments' (1) perpetrated at the outset of Hitler's Third Reich in Germany. This is because the proposed bill trashes what little remains of the US Constitution by providing that one Branch of the American Government, the Judicial Branch, will be precluded from oversight of what the US Treasury Department, which is a component of the Executive Branch, will be 'permitted' to do under this legislation.

• No single Branch of the US Government can constitutionally combine with another Branch to nullify powers of the third Branch, whether such arrangements are labelled 'temporary' or not.

Since this is precisely what is being proposed, the legislation that the Congress is being hassled to pass, on the pretext of almost force majeure, represents a coup d'etat in all but name. Legislators voting for this measure will incriminate themselves, thereby joining all the US officials and office-holders who are seeking to perpetrate this grotesque putsch against the Constitution and who are themselves, as most legislators know full well, the architects of the crisis that they are now using as a pretext for the assumption of these near-dictatorial powers.

CONGRESS MUST SAY NO, OR IT DESTROYS ITSELF TOO:
Irrespective of the consequences, the Congress must say NO. This would be a safe bet anyway, because this proposal won't 'fly' with either the US taxpayer or in the international financial markets generally. The main reason for this is that the furore surrounding the endless US blocking of the Settlements and the consequent destabilisation of the entire global financial system and economy has had the effect of causing scales to fall from the eyes of counterparties worldwide.

This will explain why new counterparties are planned, including an operation in Africa which, we are led to believe, will be headed by none other than the US Treasury Secretary himself after he has left office. This man is the primary apparatchik who is responsible for the financial crisis.

According to our sources, he will have at his disposal a considerable volume of the $700 billion that the US Government is asking the Rest of the World to provide, ostensibly to extract the US official perpetrators out of the grave that they have been digging for themselves thanks to their ongoing determination to perpetuate these fraudulent finance operations, rather than fulfilling their oboligations to the American people and the Rest of the World to clean up their act.

THE SOLUTION TO THEIR PROBLEM, SERIOUSLY, IS MICHAEL C. COTTRELL'S REFORM PLAN:
For the solution to their problems, after payment of the hijacked Settlements, please see the simple Plan framed by the US securities expert Michael C. Cottrell, B.A., M.S., which has been reposted for the third time on our website (dated 18th September 2008).

ANALYSIS OF THE FRAUDULENT FINANCE LURKING INSIDE THIS LATEST FALSE PROSPECTUS:

We will now analyse the financial fraud that resides at the centre of the most recent 'sticking plaster' proposals concocted by the US financial authorities, in more detail.

As will be seen, far from healing the wound, it pours more venom into the bloodstream, with the certainty that the entire limb will succumb to gangrene, requiring later amputation at the thigh:

• SECURITISATION: In this context, it means the conversion of BANK LOANS as well as other assets into marketable securities for sale to investors (who may not do their due diligence):

FACTS:

(1) The securities offered for sale can be purchased by other depository institutions or nonbank investors. The selling bank is not fussed who buys the securities, as long as it gets rid of them.

(2) Securitisation can also mean financing through FLOATING RATE NOTES and Eurocommercial paper, replacing bank loans as a means of borrowing. This is a form of securitisation, too.

• WHAT SECURITISATION ACHIEVES for financial institutions (the only parties they care about):

... By securitising bank loans and credit receivables, US financial institutions are able to REMOVE bank assets from the balance sheet if certain conditions are met, thereby BOOSTING capital ratios, whereupon the institution can extend fresh loans from the proceeds of the securities that have been sold to investors (who are indeed unlikely to have done their due diligence, not least in this context because they will be bamboozled by the official US Government imprimatur).

• THE PROCESS: So what this gimmick does, is it effectively MERGES THE CREDIT MARKETS (for example, the mortgage market, within which lenders can extend NEW mortgages) with THE CAPITAL MARKETS, because:

• Bank receivables are repackaged as bonds collateralised into pools of mortgages, auto loans, credit card receivables, leases, and other types of credit obligations: AND:

• Since the banks look to investors as the ultimate holders of the new obligations created via bank lending, financial institutions as an industry have become more inclined to act more as SELLERS OF ASSETS, rather than as PORTFOLIO LENDERS which traditionally keep all the loans that they have originated in their own portfolio. Banks now operate more as marketing platforms than as lenders.

• SECURITISATION also redefines the standard banking sector definition of ASSET QUALITY, and loan underwriting standards, because LENDERS are focused on LOAN QUALITY only insofar as it facilitates MARKETABILITY IN THE CAPITAL MARKETS. It's all about MARKETING THE NEW SECURITY, rather than the PROBABILITY OF REPAYMENT by the borrowers of the bank loans.

• NON-RECOURSE: THE SECRET OF PAULSON'S DECEPTION AND FRAUD MODEL:
SO, IF A BORROWER DEFAULTS, the bank is off the hook because it sold the loan to a third party and the bank has its money already. The injured party is the holder of the security (the third party) who is left holding a worthless asset, and is stuck with the problem of NON-RECOURSE. The third party cannot claim the value back from the bank because the bank has washed its hands of the loan when it sold the loan repackaged as an asset-backed security to the third party buyer.

A subsidiary fraud buried in this deception is that since the securitised 'asset' consists of a pool of the aforementioned securities, the borrower's default is glossed over and the third party doesn't get to know about it. But of course:

• THIS MEANS THAT THE VALUE OF THE SECURITISED ASSET IS BY DEFINITION UNQUANTIFIABLE...

• WHICH IS BLATANT, OUTRIGHT FRAUD...

• AND A GROSS BREACH OF SECURITIES REGULATIONS BY THE ISSUING BANK...

• WHICH NONE OF THE ISSUING BANKS WANT YOU TO KNOW ABOUT.

SO, THE U.S. TREASURY PROPOSES TO INSTITUTIONALISE THESE FRAUDULENT PRACTICES:
Therefore, what the US Treasury is proposing is to institutionalise this fraudulent process and to 'legitimise' it by appending the imprimatur of the Full Faith and Credit of the United States, as though the securitised assets in question have suddenly acquired real value, which is UNTRUE.

By extension, this means that the US Treasury proposes to perpetrate the same criminal financial fraud model that we have exposed, and to pass it off as 'legit' on the basis of its expectation that parties foolish enough to buy these 'assets' won't have done adequate due diligence.

SORRY, BUT THERE AREN'T ANY COUNTERPARTIES LEFT WITH SCALES ON THEIR EYES
This is not going to work because, as indicated above, there aren't any willing counterparties around any more. US skulduggery has gone on far too long, and the Governments that are being asked to cough up the $700 billion to finance the pocket money that these people covet, are very unlikely to want to know. Especially after the American Government's and Treasury's reputation for honourable dealing has been wallowing in the gutter for the past several years, as a consequence of its hijacking of the Settlements funds, the stealing of The Queen's gold, and the misuse of her funds with Citibank to finance deals to make quick bucks for insiders, contrary to the Rule of Law. Furthermore:

• FOR REGULATORY REPORTING PURPOSES, a loan that is CONVERTED INTO A SECURITY and SOLD as an ASSET-BACKED SECURITY qualifies as a SALE OF ASSETS.

• The seller (the institution) retains NO RISK OF LOSS from the assets transferred, and has no outstanding OBLIGATION to the BUYER OF THE ASSET-BACKED SECURITY if:

(1) The borrower defaults; or:

(2) Changes occur in the so-called market value of the asset-backed securities sold on.

• IN OTHER WORDS, THE HOLDER OF THE ASSET-BACKED SECURITY HAS NO RECOURSE.

• By contrast, asset transfers where the buyer does have RECOURSE against the selling institution are treated as FINANCINGS, or else as BORROWING SECURED BY ASSETS.

Source: Thomas Fitch, 'Dictionary of Banking Terms', Third Edition, Happauge: Barron's Educational Series, Inc., 1997, s.v., 'Securitiszation'.

One other definition will assist comprehension of the fraudulent finance that the US Treasury wants the US Congress to rubber-stamp:

• SYNTHETIC ASSET: A synthetic asset is a value that is artificially created using other assets, such as securities, in combination. Also known as a 'Structured Note'.

Source: John Downes and Jordan Elliot Goodman, 'Dictionary of Finance and Investment Terms', Seventh Edition, Happauge: Barron's Educational Series, Inc., 2006, s.v. 'Synthetic Asset'.

THE INTENDED FRAUD IS MULTIPLE FRAUD:
In summary, what is intended is a perpetuation of the following technical securities frauds:

• It is securities fraud if the lender fails to inform the borrower that the loan has been sold on.

• It is securities fraud if the lender fails to inform the buyer of the repackaged so-called asset-backed security that the borrower has defaulted, may well default, or that the cashflow from the borrower may be unreliable. Since that is standard practice with these frauds, the buyer of the asset-backed security pays a false price for a 'piece of paper' the value of which, by definition, will remain unknown.

For the US Government to enter into such fraudulent finance operations as Principal risks destroying what remains of the Full Faith and Credit of the United States, within a matter of days or weeks. No-one who is not sitting on their brains is going to buy this 'solution' to the financial crisis, not least because the whole world is now aware that the US Government cannot be trusted and that its behaviour over the Settlements has been criminal.

The only parties who are being bamboozled by this ramp are the stupid 'mainstream' talking heads.

PRECISE DEFINITIONS FOR REFERENCE:
The 'Dictionary of Banking Terms' by Thomas P Fitch [Third Edition, Happauge: Barron's Educational Series, Inc.,] published in 1997, defines SECURITIZATION as follows:

'SECURITIZATION': 'Conversion of bank loans and other assets into marketable securities for sale to investors. Securities offered for sale can be purchased by other depository institutions or nonbank investors. More broadly, corporate financing through Floating Rate Notes and via Eurocommercial paper, replacing bank loans as a means of borrowing, is a form of securitization.

By securitizing bank loans and credit receivables, US financial institutions are able to remove bank assets from the balance sheet if certain conditions are met, boosting their capital ratios, and make new loans from the proceeds of the securities sold to investors. The process effectively merges the credit markets (for example, the mortgage market in which lenders make new mortgages) and the capital markets, because bank receivables are repackaged as bonds collateralized by pools of mortgages, auto loans, credit card receivables, leases, and other types of credit obligations.

As the banks look to investors as the ultimate holders of the obligations created by bank lending, banks as an industry are inclined to act more as sellers of assets, rather than portfolio lenders that keep all the loans they originate in their own portfolio.

Securitization also redefines the banking definition of ASSET QUALITY, and of loan underwriting standards, because lenders will be looking at loan quality more in terms of their marketability in the capital markets than the probability of repayment by the borrowers.

For regulatory reporting purposes, a loan that is converted into a security and sold as an asset-backed security qualifies as a sale of assets. The seller retains no risk of loss from the assets transferred, and has no obligation to the buyer for borrower defaults or changes in the market value of securities sold. Asset transfers where the buyer has RECOURSE against the selling institution, are treated as financings or a borrowing secured by assets.

Securitization of bank assets is further complicated by Securities and Exchange Commission [SEC] regulations, and accounting guidelines...' ENDS

... And the reason for THIS is that the securities market environment is far stricter and inimical to financial fraud than the banking sector environment. The abandoned Glass-Steagall Act legislation will have to be restored in a new, updated format, as requested by Michael C. Cottrell, B.A., M.S., in his proposals displayed at www.worldreports.org dated 18th September 2008 [Archive].

The 'Dictionary of Finance and Investment Terms', by John A Downes, A.B., and Jordan Elliot Goodman, A.B., M.A. [ 'Dictionary of Finance and Investment Terms', Seventh Edition, Happauge: Barron's Educational Series, Inc.], published in 2006, defines ASSET-BACKED SECURITIES thus:

'ASSET-BACKED SECURITIES': 'Bonds or notes that are backed by loan paper or accounts receivable originated by banks, credit card companies, or other providers of credit and often "enhanced" by a bank LETTER OF CREDIT or by insurance coverage that is provided by an institution other than the issuer. Typically, the originator of the loan or accounts receivable paper sells it into a specially created trust [or subsidiary corporation: see below: Ed,] which repackages it as securities with a minimum denomination of $1,000 and a term of five years or less. The securities are then perhaps underwritten by brokerage firms who reoffer them to the public. Examples are CERTIFICATES FOR AUTOMOBILE RECEIVABLES (CARs) and so-called plastic bonds, backed by credit card receivables.

Because the institution that originated the underlying loans or receivables is neither the obligor nor the guarantor, investors should evaluate the quality of the original paper, the worth of the guarantor or insurer, and the extent of the protection'. ENDS

SELLING THE ASSET-BACKED SECURITIES ON: WHO TO?
The US and international financial markets are no more enamoured of this latest attempt by the US Treasury to pull a rabbit out of a hat full of holes than about any of the earlier 'rescue' operations, which all have one feature in common: their primary functions are to serve the interests of a very small clique of criminalist 'insiders' who have been engaged in ransacking the financial markets for private gain, and to finance the operations of the 'State within the State', namely the Intelligence Power, which, due to its power of penetration, controls all dimensions of Government, starting with the White House itself.

Basically, the latest Treasury proposal, which almost seems to be withering on the vine before it gathers any traction, is all about the Treasury acquiring new cash so that the new money can be siphoned off to 'insider' operations controlled by the highest-level operatives.

MODELS FOR THIS NEW VERSION OF THE SAME OLD FRAUD:
The models for this unconscionable abuse of financial power by officials and holders of high office relate to Delmarva Timber Trust, Meridian Investments, Alpha Holdings and the primary slush-fund operation, Carlyle, which is similar in concept and origin to the notorious AIG, which has been at the epicentre of CIA fraudulent finance operations for decades. As another analyst has pointed out, the $85 billion bridging loan (offset by funding from the Reserve Bank of Australia) extended by the US authorities to AIG, gives the Government an 80% share in AIG, 'a move that will prevent external players from peering into AIG's myriad intelligence operations on behalf of the CIA' (3).

WE 'PEER INTO AIG'S MYRIAD INTELLIGENCE OPERATIONS ON BEHALF OF THE CIA':
This entity was chaired, until his enforced resignation, by Maurice 'Hank' Greenberg, a close friend of Dr Henry Kissinger. AIG's operations in Asia are reported by the same source (3) as having pre-dated the CIA and its predecessor, the wartime Office of Strategic Services (OSS). AIG's brand new building in Hong Kong had been intended as a key outpost for CIA operatives assigned to China.

But Chinese intelligence succeeded in thoroughly wiring the building with surveillance systems, so that AIG's China operations on behalf of the CIA were blown. With the US Government now in full control of AIG, the George Bush Center for Intelligence (Langley) and the Bush Family will, as this source noted on 18th September, 'breathe a lot easier'. Well, not actually...

Because any investigative journalist can easily 'peer into AIG's myriad intelligence operations on behalf of the CIA' by accessing the rollcall of AIG subsidiaries listed by the State of Delaware. On 21st September 2008, this list contained 747 names, of which an initial sample is shown here.

SAMPLE LIST SHOWS THAT AIG DELAWARE SUBSIDIARIES SERVICE THE 'BOX GANG':
It will be noticed that the name 'Baker' appears frequently, and that there are some entities containing the name 'Chelsea'. Do we need to explain that 'Baker' entities are connected with George Bush Sr., and 'Chelsea' entities with the Clintons?

One way that such entities are financed is through the issuance, for instance, of AIG shares to the subsidiary, which then uses the shares as collateral for bank loans. The proceeds are then placed into trading programs for private enrichment and off-off-budget financing (also known as 'Black' Budget') purposes. Hence, the earlier exotic 'rescue' of AIG represented (as is the case with each successive, ever more 'exotic', US official initiative to get the official perpetrators of financial fraud off the hook), a 'backside protection operation', to escape, for instance, Chapter 11 proceedings and the appearance on the scene of Trustees, who would expose the fraudulent finance that has been going on and would be legally obliged to report such glaringly criminal operations to US law enforcement authorities.

Entities such as the AIG Delaware corporations shown here represent improperly audited CIA and 'Black Ops' enterprises to which securitised assets such as those reviewed above, might be on-sold. An immense amount of 'smoking gun' information along similar lines is available to be mined; and relentless exposure of such fraudulent finance activities must accompany wholesale reform of the system, for example along the lines proposed by Michael C. Cottrell, B.A., M.S., and reposted on this website on 18th September 2008, if the Republic is to stand even a slight chance of ever hoping to redeem its tarnished reputation with the Rest of the World:

FILE NUMBER + ENTITY NAME
2143191 AIG ACQUISITION CORP.
2227137 AIG ACQUISITION CORP.
3304183 AIG AJV, INC.
4252940 AIGALON CAPITOL, LLC
3311083 AIG ALTA GREEN, L.L.C.
4283528 AIG ALTARIS HEALTH CAPITAL, LLC
4323757 AIG ALTARIS HEALTH PARTNERS II, L.P.
3574541 AIG ALTARIS HEALTH PARTNERS, L.P.
4295554 AIG ALTARIS MASTER GP, L.P.
3034312 AIG AMB GREENFIELD INVESTMENT ALLIANCE, L.L.C.
2408409 AIGAM, INC.
3312653 AIG ANAHEIM, L.L.C.
2906387 AIG ARGENTINE HOLDINGS, L.L.C.
3373609 AIG ASIAN REAL ESTATE PARTNERS COMPANY, LLC
4397594 AIG ASIAN REAL ESTATE PARTNERS II, L.L.C.
4398654 AIG ASIAN REAL ESTATE PARTNERS II, L.P.
4397597 AIG ASIAN REAL ESTATE PARTNERS II (USD), L.P.
3374221 AIG ASIAN REAL ESTATE PARTNERS, L.P.
2458507 AIG ASSET MANAGEMENT GROUP, INC.
2300068 AIG ASSET MANAGEMENT, INC.
2458530 AIG ASSET MANAGEMENT SERVICES, INC.
4255185 AI GATEWAY, INC.
3355144 AIG BAKER ANDERSON, L.L.C.
3838432 AIG BAKER BAY PARK, L.L.C.
4355818 AIG BAKER BELLEVUE, L.L.C.
3201331 AIG BAKER BIRMINGHAM PROPERTIES, L.L.C.
4015304 AIG BAKER BOGGY POINT, L.L.C.
3388960 AIG BAKER BRENTWOOD, L.L.C.
3398187 AIG BAKER BROOKSTONE, L.L.C.
3591309 AIG BAKER CARSON VALLEY, L.L.C.
4273661 AIG BAKER CASHIERS, L.L.C.
2975631 AIG BAKER CHERRYDALE, L.L.C.
3070092 AIG BAKER CONYERS, L.L.C.
3267324 AIG BAKER DAPHNE, L.L.C.
3837123 AIG BAKER DEPTFORD, L.L.C.
2870569 AIG BAKER DEVELOPMENT, L.L.C.
3096024 AIG BAKER DULLES, L.L.C.
3710928 AIG BAKER EAST VILLAGE, L.L.C.
3989425 AIG BAKER FALLSCHASE FUNDING, L.L.C.
3821162 AIG BAKER FOLEY, L.L.C
4093617 AIG BAKER FRANKFORD, L.L.C.
4063985 AIG BAKER GATEWAY, L.L.C.
4363663 AIG BAKER GEORGETOWN, L.L.C.
3407123 AIG BAKER GRAND JUNCTION, L.L.C.
4285004 AIG BAKER GULF SHORES GOLF COURSE, L.L.C.
4385580 AIG BAKER HAMMOCK DUNES, L.L.C.
3479653 AIG BAKER HARRISONBURG, L.L.C.
3399635 AIG BAKER HOOVER, L.L.C.
2971167 AIG BAKER LEE BRANCH, L.L.C.
3946972 AIG BAKER LILLIAN, L.L.C.
4075877 AIG BAKER LILLIAN TWO, L.L.C.
2358386 AIG/BAKER, LLC
4015298 AIG BAKER LONG'S BAYOU, L.L.C.
2870574 AIG BAKER MANAGEMENT, L.L.C.
2882738 AIG BAKER MANASSAS, L.L.C.
4043423 AIG BAKER MARSH BRIDGE, L.L.C.
4463446 AIG BAKER MARTINSBURG, LLC
3238726 AIG BAKER MOUNT OLIVE, L.L.C.
3121847 AIG BAKER MRP, L.L.C.
4004930 AIG BAKER ORANGE BEACH AMPHITHEATER, L.L.C.
3990512 AIG BAKER ORANGE BEACH MARINA, L.L.C.
3824963 AIG BAKER ORANGE BEACH WHARF, L.L.C.
3334036 AIG BAKER OUTLET, L.L.C.
3622541 AIG BAKER PELHAM, L.L.C.
3178668 AIG BAKER PHILADELPHIA, L.L.C.
4307291 AIG BAKER PRATTVILLE, LLC
2870582 AIG BAKER REAL ESTATE, L.L.C.
4261663 AIG BAKER RETAIL GROUP, L.L.C.
3179708 AIG BAKER RITTENHOUSE, L.L.C.
2889606 AIG BAKER SAGINAW, LLC
2937850 AIG BAKER SEVEN SPRINGS, L.L.C.
3292875 AIG BAKER SHADES CREST, L.L.C.
2997604 AIG BAKER SHAWNEE WEST, L.L.C.
2870579 AIG BAKER SHOPPING CENTER PROPERTIES, L.L.C.
2906293 AIG BAKER SILVERADO, L.L.C.
3861858 AIG BAKER SPARKS, L.L.C.
2875707 AIG BAKER STERLING HEIGHTS, L.L.C.
4250541 AIG BAKER TALLAHASSEE COMMUNITIES, L.L.C.
4081060 AIG BAKER TALLAHASSEE, L.L.C.
4376173 AIG BAKER TIMBER INVESTMENTS, L.L.C. ( see RED BIRD Timber)
FILE NUMBER ENTITY NAME
3158426 AIG BAKER VESTAVIA, L.L.C.
3197550 AIG BAKER VESTAVIA OUTPARCEL, L.L.C.
3197546 AIG BAKER VESTAVIA SHOPPING CENTER, L.L.C.
3601281 AIG BAKER WACO, L.L.C.
4112974 AIG BAKER WHARF INN, L.L.C.
4363662 AIG BAKER WHARF REAL ESTATE, L.L.C.
4243777 AIG BAKER WILLIAMSBURG, L.L.C.
3237426 AIG GAS, LLC
2553492 AIG GLOBAL ASSET MANAGEMENT HOLDINGS CORP.
2765233 AIG GLOBAL EMERGING MARKETS FUND, L.L.C.
3047958 AIG GLOBAL INVESTMENT CORP. CBO-3 CORP.
3586836 AIG GLOBAL INVESTMENT GROUP MUNICIPAL INSURED FUND
2996701 AIG GLOBAL REAL ESTATE ASIA PACIFIC, INC.
3221952 AIG GLOBAL REAL ESTATE INVESTMENT (ASIA) LLC
2153238 AIG GLOBAL REAL ESTATE INVESTMENT CORP.
3260361 AIG GLOBAL REAL ESTATE INVESTMENT (EUROPE) CORP.
3382284 AIG GLOBAL REAL ESTATE PR SHOPPING CENTERS I, LLC
3378602 AIG GLOBAL REAL ESTATE RESIDENTIAL I LLC
3356920 AIG GLOBAL REAL ESTATE SHANGHAI LEASING AND MANAGEMENT CORPORATION
3357067 AIG GLOBAL REAL ESTATE SHANGHAI MARKETING AND ASSET
MANAGEMENT CORPORATION
4149819 AIGGRE ALHAMBRA LLC
3677226 AIGGRE ASIA FUND MURRAY HILL I LLC
3677210 AIGGRE ATLANTIC CHELSEA I LLC
3677208 AIGGRE ATLANTIC MURRAY HILL I LLC
3677234 AIGGRE BAKER MURRAY HILL I LLC
3769536 AIGGRE BAKER SOHO I LLC
3944816 AIGGRE BALDWIN PARK LLC
4147322 AIGGRE BRANDON I L.L.C.
3677240 AIGGRE CARIBBEAN RETAIL CHELSEA I LLC
3677237 AIGGRE CARIBBEAN RETAIL MURRAY HILL I LLC
3808596 AIGGRE CHELSEA COMMERCIAL INDUSTRIAL COMPANY LLC
4192257 AIGGRE CHELSEA MIDWEST LAND DEVELOPMENT LLC
4422125 AIGGRE COMMERCIAL INDUSTRIAL COMPANY II LLC
4012568 AIGGRE CYPRESS FAIRBANKS LLC
4400174 AIGGRE EAST COAST PORTFOLIO CHELSEA LLC
4400171 AIGGRE EAST COAST PORTFOLIO LLC
3791803 AIGGRE ELLINWOOD, LLC
3677231 AIGGRE EUROPE FUND MURRAY HILL I LLC
4012975 AIGGRE FAIRBANKS CHELSEA I LLC
3731346 AIGGRE FC CAPITAL FUNDING LLC
4409456 AIGGRE FOUR PENN CENTER, LLC
4386045 AIGGRE FRUITDALE LLC
4381233 AIGGRE FUND II BRIDGE LOAN LLC
4397589 AIGGRE FUND III BRIDGE LOAN, LLC
4421806 AIGGRE HENRY STREET LLC
4353887 AIGGRE HUDSON MEZZANINE LLC
4171976 AIGGRE HUDSON NORTH LLC
4171975 AIGGRE HUDSON SOUTH LLC
4236025 AIGGRE INDIA CHELSEA I LLC
4236026 AIGGRE INDIA MURRAY HILL I LLC
3677244 AIGGRE INDUSTRIAL II CHELSEA LLC *
3677242 AIGGRE INDUSTRIAL II MURRAY HILL LLC
4330000 AIGGRE KENAVON LLC
3927938 AIGGRE KIAHUNA LLC
4174386 AIGGRE KOREA FUND MURRAY HILL I LLC
4385516 AIG GRE LATIN AMERICA REALTY LLC
3775732 AIGGRE LEGACY CHELSEA I LLC *
2395807 AIG TECHNICAL SERVICES, INC.
1015633 AIG TECHNOLOGIES, INC.
2173464 AIG TECHNOLOGY MANAGEMENT SERVICES, INC.
2943791 AIG TELECOMMUNICATIONS INC.
2941587 AIG TELECOMMUNICATIONS LLC
2008877 AIGTI, INC.
3312651 AIG TORRANCE, L.L.C.
2224837 AIG TRADING CORPORATION
2439068 AIG TRADING GROUP CAPITAL CORPORATION
2351048 AIG TRADING GROUP INC.
3483502 AIG TRADING MANAGEMENT COMPANY INC.
2351062 AIG TRADING SERVICES INC.
0863164 AIG TRAVEL ASSIST, INC.
3389328 AIG TRAVEL, INC.
4337952 AIG TW CORPORATION

Notes and References:

(1) The 'subprime' 'slide' that masks fraudulent finance: 'The money you make illegally using my money is my money': Report dated 26th December 2007: see www.worldreports.org: Archive.

(2) 'Coup d'etat by installments': Phrase used to describe Hitler's seizure of power in stages, by Konrad Heiden, 'Der Fuehrer', Boston, 1944, page 579, cited in 'Hitler's Thirty Days to Power: January 1933', Henry Ashby Turner Jr., Addison-Wesley Publishing Co., Inc. Reading, MA, 1996:

'Only by banning the Communist deputies and by resorting to intimidation and mendacity did Hitler secure on March 23 the necessary two-thirds vote in the new Reichstag for an Enabling Act that transferred legislative authority to his Cabinet, ostensibly for four years'.

• BE AWARE that the 'Paulson, 'rescue plan' is supposed to be TEMPORARY. DON'T BELIEVE IT.

'A wave of Nazi purges followed, as one institution after another was subjugated. Arbitrary rule replaced government by law in what has been aptly termed a "coup d'etat by installments"'.


ANNEXE:

REITERATION OF THE U.S. STATUTES, SECURITIES REGULATIONS AND LEGAL PRINCIPLES OF WHICH THE TOP CRIMINALISTS, THEIR ASSOCIATES AND RELEVANT BANKERS ARE/HAVE BEEN IN BREACH:

LEGAL TUTORIAL: The Steps of Common Fraud:

Step 1: Fraud in the Inducement: “… is intended to and which does cause one to execute an instrument, or make an agreement… The misrepresentation involved does not mislead one as the paper he signs but rather misleads as to the true facts of a situation, and the false impression it causes is a basis of a decision to sign or render a judgment” Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

Step 2: Fraud in Fact by Deceit (Obfuscation and Denial) and Theft:

• “ACTUAL FRAUD. Deceit. Concealing something or making a false representation with an evil intent [scanter] when it causes injury to another…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Fraud’.

• “THE TORT OF FRAUDULENT DECEIT… The elements of actionable deceit are: A false representation of a material fact made with knowledge of its falsity, or recklessly, or without reasonable grounds for believing its truth, and with intent to induce reliance thereon, on which plaintiff justifiably relies on his injury…”. Source: Steven H. Gifis, ‘Law Dictionary’, 5th Edition, Happauge: Barron’s Educational Series, Inc., 2003, s.v.: ‘Deceit’.

Step 3: Theft by Deception and Fraudulent Conveyance:

THEFT BY DECEPTION:

• “FRAUDULENT CONCEALMENT… The hiding or suppression of a material fact or circumstance which the party is legally or morally bound to disclose…”.

• “The test of whether failure to disclose material facts constitutes fraud is the existence of a duty, legal or equitable, arising from the relation of the parties: failure to disclose a material fact with intent to mislead or defraud under such circumstances being equivalent to an actual ‘fraudulent concealment’…”.

• To suspend running of limitations, it means the employment of artifice, planned to prevent inquiry or escape investigation and mislead or hinder acquirement of information disclosing a right of action, and acts relied on must be of an affirmative character and fraudulent…”.

Source: Black, Henry Campbell, M.A., Black’s Law Dictionary’, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Concealment’.

FRAUDULENT CONVEYANCE:

• ‘FRAUDULENT CONVEYANCE… A conveyance or transfer of property, the object of which is to defraud a creditor, or hinder or delay him, or to put such property beyond his reach…”.

• “Conveyance made with intent to avoid some duty or debt due by or incumbent or person (entity) making transfer…”.

Source: Black, Henry Campbell, M.A., ‘Black’s Law Dictionary, Revised 4th Edition, St Paul: West Publishing Company, 1968, s.v. ‘Fraudulent Conveyance’.

U.S. SECURITIES REGULATIONS OF WHICH KEY INSTITUTIONS HAVE BEEN SHOWN TO BE IN BREACH:

• NASD Rule 3120, et al.
• NASD Rule 2330, et al
• NASD Conduct Rules 2110 and 3040
• NASD Conduct Rules 2110 and IM-2110-1
• NASD Conduct Rules 2110 and SEC Rule 15c3-1
• NASD Conduct Rules 2110 and 3110
• SEC Rules 17a-3 and 17a-4
• NASD Conduct Rules 2110 and Procedural Rule 8210
• NASD Conduct Rules 2110 and 2330 and IM-2330
• NASD Conduct Rules 2110 and IM-2110-5
• NASD Systems and Programme Rules 6950 through 6957
• 97-13 Bank Secrecy Act, Recordkeeping Rule for funds transfers and transmittals of funds, et al.

U.S. LAWS ROUTINELY BREACHED BY THE CRIMINAL OPERATIVES AND BANKSTERS:

• Annunzio-Wylie Anti-Money Laundering Act
• Anti-Drug Abuse Act
• Applicable international money laundering restrictions
• Bank Secrecy Act
• Conspiracy to commit and cover up murder.
• Crimes, General Provisions, Accessory After the Fact [Title 18, USC]
• Currency and Foreign Transactions Reporting Act
• Economic Espionage Act
• Hobbs Act
• Imparting or Conveying False Information [Title 18, USC]
• Maloney Act
• Misprision of Felony [Title 18, USC] (1)
• Money-Laundering Control Act
• Money-Laundering Suppression Act
• Organized Crime Control Act of 1970
• Perpetration of repeated egregious felonies by State and Federal public employees and their Departments and agencies, which are co-responsible with the said employees for ONGOING illegal and criminal actions, to sustain fraudulent operations and crimes in order to cover up criminalist activities and High Crimes and Misdemeanours by present and former holders of high office under the United States
• Provisions pertaining to private business transactions being protected under both private and criminal penalties [H.R. 3723]
• Provisions prohibiting the bribing of foreign officials [F.I.S.A.]
• Racketeer Influenced and Corrupt Organizations Act [R.I.C.O.]
• Securities Act 1933
• Securities Act 1934
• Terrorism Prevention Act
• Treason legislation, especially in time of war.

[Wandering Daoist]

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