Saturday, February 11, 2012

Bailouts Forever

There are two things that I am going to discuss today.  One is the $1.6 billion stolen by MF Global that may fund the Greek bailout, and the other is how the Foreclosure Settlement that Obama's AGs made and how the Fed will buy all of the MBS from the banks to give them the cash for the settlement.  These two things are front and center for the ongoing bailouts of the Fiat Ponzi.

For awhile it was reported that MF Global had lost, or rather stolen, $1.2 billion from its clients.  The number now being reported is $1.6.  Isn't it interesting that once that number is fractionally reserved, it becomes $14 billion, the same number of debt that will be rolled by Greece.  Is it possible that the dollars transferred to JPM are going to be used to roll Greek's debt?

The Foreclosure Settlement is another backdoor deal for the Fed to bail out banks.  It is being done now while the MBS is still of value so that the banks get some bang for their buck.  The housing market is set to have another leg down, one that will see the values get cut in half once again (as housing has already lost half of its value).  Bernanke has shown his hand as he said housing is, "No longer a safe investment."  He said that because his next QE, the QE that is ongoing and has never stopped, will be to buy up the MBS market.

The plan is for the Fed to own an overwhelming amount of debt.  They will soon own one third of all Treasurie debt, as the indirect owners (foreign owners) have been dumping USTs en masse since November.  Now they will begin to buy MBS like it is going out of style.Their book will reach the proportion of Europe's.  Combined the balance sheets are around $15 trillion.

The Fiat Ponzi has leveraged itself beyond imagine.  The only thing it has going for itself is that the massive inflation that is being programmed with binary code is being met with a collapsing housing market.  Soon things that were thought to have value will only have value based on inflated debt numbers.  Soon a meal will cost ten dollars per head, a gallon of gas will be $5, but the house one has slaved one's life away for will have half of the value it did seven years ago.  The people's wealth has been looted.  Does anyone really care?

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