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Never underestimate the crookedness of those who shower before going to work in the morning.
Briefly....Henry Paulson told us originally that he wanted to buy up those "toxic" mortgage based securities in order to 'unfreeze' credit between banks. We were told that liquidity was frozen because banks couldn't trust one another to pay back loans. As the scam was constructed, Congress and the American people were informed that banks, because of their own devious and destructive gambling habits, didn't really know how bad their balance sheets were. They didn't really know what all those "bundles" were actually worth. The alleged answer was for the government to buy up these "toxic" bundles...with $700 BILLION of future tax receipts....thus, theoretically, allowing for banks to trust one another enough for cash to flow again.
Later...as the scam morphed....Paulson told us the original "bundle buyback" was off the table. The $700 BILLION would simply be used to buy bank stock. Questions arose immediately.
Now, with today's Post article, we find out why.
Congress wanted to guarantee that the $700 billion financial bailout would limit the eye-popping pay of Wall Street executives, so lawmakers included a mechanism for reviewing executive compensation and penalizing firms that break the rules.
But at the last minute, the Bush administration insisted on a one-sentence change to the provision, congressional aides said. The change stipulated that the penalty would apply only to firms that received bailout funds by selling troubled assets to the government in an auction, which was the way the Treasury Department had said it planned to use the money.
You see....if Treasury bought back those toxic bundles from banks.....those banks would have to limit executive pay, bonuses, etc....as Congress wisely included in legislation. But a "one sentence" inclusion by the "Bush administration" loopholed any pay limitation for those who organized the original money schemes,.....the catch was that those banks who still wanted to hand out outrageous salaries and bonuses could continue to do so if they DIDN'T participate in auctioning those toxic bundles.....the very intent of the original plan.
These guys have brass ones, don't they?
In the same way that WMD was used deceptively to fulfill the Project for the New American Century's
ideological wet dream for Iraq.....so too, we have now been propagandized with the new bank crisis "WMD"..... "toxic mortgage bundles".... used deceptively to reinforce the gambling money schemers balance sheet with tax dollars while placing NO limitations on the gamblers who created the original crisis.
UPDATE: Surprise! Yeah, we lied......
Meanwhile, Paulson repeatedly told lawmakers that he did not plan to use bailout funds to inject capital directly into financial institutions. Privately, however, his staff was developing plans to do just that, Paulson acknowledged in an interview. Source