Who Would You Help?

Published on Countercurrents.org, by Tim Buchholz, 21 March, 2008.

The Federal Reserve recently announced they would be releasing an additional $200 Billion into the market to help ease the credit crunch brought on by the sub-prime mortgage crisis. They are releasing this liquidity in the form of Treasury Securities. The US Treasury’s website, www.treasurydirect.gov, describes Treasury Securities as part of the Public debt. They explain this debt as all federal debt held by individuals, corporations, state or local governments, foreign governments, and other entities outside the United States.

According to an article by Jeannine Aversa in AP called Fed Easing Liquidity in Foreign Markets, the Federal Reserve will offer this capital in auctions starting March 27 to big Wall Street investment houses and banks. These companies will be able to buy these Securities using their sub-prime mortgage loans as collateral. So, we are letting the banks use these bad loans to buy good loans backed by our tax dollars, and the Fed is offering our tax dollars (or future tax dollars) to bail out the banking industry.

Are the banks offering this same option to their customers? …

… How about a good investment? According to a CNBC report on March 10th, Billionaire Wilbur Ross invested $1 billion into municipal bonds in the banking/loan industry to help in this time of crisis. All out of the kindness of his heart, or as a big tax write-off? No. At interest, for profit! You might have noticed The Fed also lends money at an interest. First, at interest to the banks, then the banks add interest for themselves. Want a good investment?

Got several billion dollars? Uncle Sam wants YOU! It can only go up, you can buy homes, or heck, our debt, at incredibly low rates, that are guaranteed to pay off, and if they don’t, why the FED will allow you to use those bad loans to get more good ones and add it to the public debt! How could you lose? Or better yet, sell those American dollars! It’s time to get into the world stock exchange, where China’s stocks rose 179.8% in 2007. Get the big money out, get the poor out of their homes with no credit to get new ones, oh, and keep the money they’ve paid so far, and the house! They should have been smarter than to take that foolish loan the nice man at the bank recommended for them as a chance to live the American dream. When will they learn? (full text).

(Tim Buchholz is an activist and freelance writer based in Ohio).

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