TigerSoft Blog - 9/20/2008 - Freedom News Service.
See also http://www.tigersoftware.com/TigerBlogs/September-18-2008/index.htm

Paulson Takes
Washington Corruption
and Cronyism To
Dizzying New Highs!

The Real Story behind Paulson's
Trillion Dollar Bail-Out Plan.

by William Schmidt, Ph.D. - Creator of TigerSoft

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From Free Fall to Free Lunch.

The Wholesale Looting of
The US Treasury under Bush Escalates.
Nothing Will Remain in 2009.  That Is Their Plan.

Another Trillion Dollar Bush Blunder Is inThe Making.

Banks Now Will Get A Staggering Trillion Dollar
For Their Worthless Mortgages.

Nationalizing Failing Banks Would Be Better.
Let The Government Lend Out The Trillion Dollars:
$3000 to each man, woman and child in the US.
That Would Stimulate The Economy!

There are so many better ways of spending
a trillion dollars.  We could rebuild the country's
crumbling indrastructure.  We could make a huge
investment in solar, wind and geothermal energy.
We could provide health insurance for all Americans.
Giving the money to bankers is ludicrous!

Socialize The Profits, not just the Risks.
That would end the "credit shock" and
excessive fear about "investors' confidence".
Banks won't loan money now anyway.
What good are they?  Nationalize them
That would stop their huge and obscene
salaries and bonuses.  Make them discover
how hard it is to raise a family on a modest salary!

Bush Is The Real Enemy.  Do You Still Have Doubts?
So Ludicrously Arrogant.  But the Media Caves in.
So does Obama!  Will no one Protect us?

Banker Henry Paulson - The Bankers' Perfect Pimp

He was given a $65 million bonus by Goldman Sachs.
He is their pimp.  He's not looking out for our interests.
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Bush guys and Banks made this mess.  Why should we
trust them to fix the problem?
Paulson denied
there was a significant problem six months ago. 
No bailouts would be needed, he said. 
when his company, Goldman Sachs, started to
free-fall, did Paulson hit the panic button!

(See charts at bottom of the page.)

Are We Being "Rolled" by a Wall Street Crook
Masquerading as US Treasury Secretary?

Paulson's  plan will mean he can buy mortgages owned by foreign
investors.  Nothing in the proposed legislation would prevent
that.  "While he was a Goldman Sachs, the company was buying up
a lot of Chinese banks in particular, and at the time of his nomination,
there were very serious questions raised about the conflicts of interest
involved, and where his priorities are, and who he really is
looking after."
Why should we prop up foreign banks?  Why should
we prop up Paulson's own company, Goldman Sachs by
buying  their worthless mortgages?
"...Paulson's former associates and colleagues are the
very people he now is in position to help aide with taxpayer dollars.
As McClatchy News reported, "Paulson's former assistant secretary,
Robert Steel, left in July to become head of Wachovia, the bank
based in Charlotte, N.C., that has hundreds of millions of troubled
mortgage loans on its books.

Paulson should not be trusted at all, much less
with $700,000,000,000 of taxpayer money.

Now in a huge hurry, he wants to rush Congress
into a massive trillion dollar bailout. 
Why should anyone trust this guy?
Decisons this big should not be rushed
through Congress.  Way too often. this White House
has played the "FEAR" card and cried "WOLF".
That's how the $3 trillion Iraq blunder was begun. 
Congress needs to think this through carefully
and reckon how big the massive downstream
costs will be if housing prices fall another 10%
ot another 15% or more, as some respected
economists expect.

Why not just make banks lower the home mortgage
rates they charge?  Why not make their rates go back
to what they were before they jacked up the
variable rates which are causing homeowners
so much distress?

Clearly Bush Administration criminals are unrepentant
after costing the US $3 Trillion in Iraq and a Trillion
more because they refused to shore up New Orleans levees!
Their new plan for bailing out bankers may well bankrupt America.

Now they want the authority to have the US Treasury give
private banks as much as at least a Trillion Dollars for their "toxic" mortgages.
Even John McCain, who supported Henry Keating, the convicted
savings and loan swindler, has called the banks "reckless"
in how they concealed mortgage risks in order to pad their
bloated salaries and profits.  They are still doing that.
Instead of swindling investors into buying packaged mortgages,
now they are swindling the American public.

The plan is to rob
all the money still left in the US Treasury and
present the next Administration with such a bleak budgetary
situation that they can only fail, thus making Republicans look
good in 2012.  Certainly, there will be no money for universal
health care or a massive public works program, if
Treasury Secretary Paulson gets his way.  This is the
most corrupt and cynically depraved Administration
in all American history.

Anericans should feel robbed, lied to, exploited and slimed, 
But the corporate media and their talking heads will talk only
of Paulson's courage in the face of the possibility of American
financial ruin.    Rubbish.  Of course, he can't just take your money. 
He has to provide some noble excuse.  The media "talking
heads" ooze praise for how this is lifting the stock market".
Don't they realize the reason stocks are going up is because
of the money being stolen from Americans' pockets, like theirs?

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Why should the taxpayer buy worthless mortgages
from greedy bankers?  This is a question no one is answering!

Responsible people lose.  Irresponsible bankers win!

How much will all the needed Treasury borrowing
raise interest rates, thereby stifling other business?

How much will Paulson's plan bring about
severe inflation, as the Treasury's printing presses speed up? 

What will happen to the Dollar when foreigners just say "No"
to Paulson's efforts to get them to loan the US a trillion dollars? 
That's easy to predict: down will go the Dollar and the standard
of living of all working class Americans. 

The Bush Administration Arrogance Is Destroying America!
Henry Paulson is corrupt.  He is simply pimping for his banking buddies.

Wake Up! 

The Republican US Treasury Secretary and the Bush Administration
in their last days in office wants the American taxpayer to pay hundreds
of billions, even a trillion dollars, for worthless mortgages that
banks hold and cannot sell to anyone else.   This is not private
enterprise or capitalism. 
This is corrupt cronyism on a collossal scale.

Unbelievable!  The media reports this with straight faces
and asks no questions.  These mortgages are called
"toxic waste" because, like radioactive waste, they threaten
to destroy certain banks like Washington Mutual...

Treasury Secretary Paulson would not go to Congress
if he did not already have their support.  It comes as no
surprise that back-boneless Obama gives his support to this
trillion dollarb ailout of bankers by taxpayers
.  He praised
Paulson for being "bold" and "decisive".  McCain
had previously said he opposed bank bailouts, but then
quickly flip-flopped.

Nancy Pelosi represents the Democrats as
the Aministration seeks Congressional approval this weekend.
Since she completely caved in regarding the Bush war in Iraq
and protected Bush from impeachment hearings,
we should not have any hopes now that she will
say "NO" to the Bush Admisitration thieves and banksters...
Worse, Democrat Barney Frank says Democrats are in
general agrrement to support the Paulson plan..

I think I can safely predict that these private banks will get
their trillion dollar bailout in return for
their worthless mortgages.  The real cost will be much higher,
If housing prices do not recover.  Then the US Government will
have to pay even more. with banks choosing their worst mortgages
to sell the US government.  Paulson's plan involves creating an
entity like the Resolution Trist Corp which was formed in 1989
to dispose of the assets of failed savings and loans,
like those created by McCain;s early benefactor and pal,
Charles Keating.

If you ever needed proof that America is a plutocracy,
where governmental decisions are made exclusively
by the very rich, for the very rich, this is your day.

The US Government's Debt is already $10 trillion.
Add another trillion, but perhaps much more, because
home prices will likely keep falling because American
consumers have used up their savings and are "in hock"
like never before, and because the employment outlook
(which closely correlates with housing prices) is so poor. 

Wealth is very highly concentrated in the US now.
That means mortgage delinquencies can only keep rising. 
Working people have little or no money.  The very rich
have it all.  Since 1915, only 1928 saw wealth so concentrated.
Extreme wealth concentration in the US, such as Paulson's
bill clearly promotes, brings a Great Depression that much closer.

The American taxpayer for generations will be paying off the
national debt Paulson's bank bailout sets up.  These future
generations are not being given a chance to vote on
Paulson's "emmergency bill".  How arrogant!  How evil!

Housing prices have fallen 20% from their 2006 highs
back to 1995 levels.  Normal corrections, when there is no bubble,
usually see 50% corrections of the last big up-move. 
Because there was clearly a housing bubble, it is much more
likely that housing prices will retrace more than 50% of the gains since 1995.

  Some economists estimate that after a bubble, housing prices
may have to fall or be stagnant for fifteen years.
  A Yale
economist, Robert Schiller,  with a stellar record of predicting
housing prices, thinks that the current decline could be worse than
in the Great Depression.   Another 10% decline is likely.
More is possible.
He notes that there are already
10 million homeowners whose mortgage debt is greater
than the value of their houses.  Many of these will probably
stop making home payments and become delinquent.
So, the notion that home prices are going to recover soon
seems very far-fetched.

Nouriel Roubini, an NYU economist, who 2 years ago predicted
the housing bubble would lead to financial crisis and recession, now
predicts the financial fallout could reach $2 trillion in losses, more
than 4 times what Paulson wants to admit.

All of this huge debt will cause inflation and further lower the
real pay and standard of living of most Americans.
Renters are already being forced to pay higher and higher
rents, as those who lose their houses enter an
already tight rental market.

Why is discipline and the free market only reserved
for working people?  Where will all this money come from?
From working people!  Not from the rich.  Count on it!
Even though, Wall Street made trillions in the good times,
they are not expected to pay their way in the bad times
that they created.  What a horrible joke!

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We see just how corrupt the Bush Administration and
the Securities and Exchane Commission is when we
realize that it is only financial stocks on which short sales will
will be prohibited for the next two weeks.  Main Street
companies have no such clout.  So, they may still be shorted.

Rep. Peter DeFazio from Oregon agrees with TigerSoft.

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Ron Paul belives corrupt banks be allowed to go bankrupt.  He says:
the problems of the economy will be compounded, not solved,
by having the US Government by their worthless mortgages.
The US has finite financial resources. 
Along with
the Fannie Maw and Freddie Mac obligations, the bailout
could cost $5 TRILLION!

The whole Dollar system will collapse with these bailouts.
wpeF7.jpg (4378 bytes)  Goldman Sachs' Banker Paulson wpe128.jpg (22562 bytes)
Is The Perfect Pimp for Bankers

Paulson was Staff Assistant to the Assistant Secretary of Defense at The Pentagon from 1970
to 1972.[5]    He then worked for the administration of U.S. President Richard Nixon, serving as assistant to John Ehrlichman from 1972 to 1973. "Paulson's flirtation with the idea that governments can do whatever they please began when he was in his 30s working as assistant  to John Erlichman, the chief architect of the Watergate Scandal."   Assistant Secretary of Defense is a title used for many executive positions in the United States Department of Defense. ..From their he went to work for Goldman Sachs and became a partner in 1982. Wall Street is run by an inner clique.  Fannie Mae was run by James Johnson until recently.   Johnson was once Paulson's boss at Goldman Sachs.  As CEO of Goldman Sachs, Paulson received $16.4 million for his last five years there. He owned $632.4 million worth of Goldman stock, at last count.

       Bush Corruption Is Pervasive

    So ubiquitous amd insidious, Bush corruption is so rife, it has to be central to
their master plan.   This is what Bush meant when he campaigned as a "different
kind if Republican.  Everywhere you turn you gross profiteering and influence peddling.
"I don't think we have had something of this scope, arrogance and sheer venality in
our lifetimes," Norman J. Ornstein, of the conservative American Enterprise Institute
"It is building to an explosion"

  "By my rough, conservative calculation — feel free to add — there have been corruption, incompetence, and contracting or cronyism scandals in these cabinet departments: Defense, Education, Justice, Interior, Homeland Security, Veterans Affairs, Health and Human Services, and Housing and Urban Development. I am not counting State, whose deputy secretary, a champion of abstinence-based international AIDS funding, resigned last month in a prostitution scandal, or the General Services Administration, now being investigated for possibly steering federal favors to Republican Congressional candidates in 2006. Or the Office of Management and Budget, whose chief procurement officer was sentenced to prison in the Abramoff fallout. I will, however, toss in a figure that reveals the sheer depth of the overall malfeasance: no fewer than four inspectors general, the official watchdogs charged with investigating improprieties in each department, are themselves under investigation simultaneously — an all-time record."
( Source: http://midcoastviews.blogspot.com/2007/05/bushs-legacy-cronyism-corruption.html )

   Iraq war contracting has been flagrantly corrupt. 
          Google :Tigersoft" and "Blackwater" or "Halliburton" or "Carlyle"

   FEMA and New Orleans - Disaster-relief contracts - Joe Altbaugh: Why the profiteering?
  "This is America.  We all have a right to make a living."


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     We can judge a man by the company he keeps. Applying this rule, we are immediately
      impressed by George Bush's close association with convicted swindler Kenneth Lay,
      Enron’s chairman.  Lay made Enron into Bush’s largest campaign contributor. 
      This helped shape public policy in Enron’s favor.   Bush refused to intervene
      when Enron’s energy price-rigging and manipulation caused a huge energy
      crisis in California. 

wpe13A.jpg (2651 bytes)   Billions and Billions for Cheney's Halliburton
in rigged, zero-competition Iraq war contracts.

wpe128.jpg (4537 bytes)  Ex-Bush aide convicted in D.C. corruption case
David Safavian, former chief of staff at the GSA 

wpe12A.jpg (7967 bytes)   Jack Abramoff, center, leaves Federal Court in Washington Tuesday, Jan. 3, 2006. The once-powerful Republican lobbyist pleaded guilty
to 3 counts of corruption. 
Abramoff sentenced to 4 years in prison | Freep.com | Detroit Free ..

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Corruption in Bush Administration
A group of high ranking Republicans working for the US Interior Department government were arrested for engaging in acts of financial and moral corruption, as they colluded with oil company employees to avoid paying royalties owed the US Government. 
The misconduct further  involved more than a dozen current and former employees of an arm of the Minerals Management Service, which takes in more than $8 billion a year in royalty revenue.  Their crimes have been specified as rigging contracts, improperly helping oil company workers fix problems with their contracts, and working part-time as private oil consultants.

Bush's US Secretary of Housing and Urban Development (HUD) Alphonso Jackson announced his resignation from the Bush cabinet Monday, after weeks of public allegations of favoritism in the awarding of government contracts and punitive treatment of a local housing authority which had refused to make a business deal with a Jackson crony.

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                              Some Comments on the Bailout
(Source: http://digg.com/business_finance/Stop_the_Subprime_Housing_Bailout )
"I've been a long time Dem and I've supported them with my votes. If they do bail these morons out, then I will make sure that the Rep representatives get at least 2 votes from me and my girlfriend. What the hell are they thinking? Wasting my money on irresponsible people like that. I've been renting because I knew that I wouldn't be able to pay the mortgage payments. Say NO to the bailout and make people realize that they have to be responsible for their own actions."

"I've got an idea. Why don't these lenders set the interest rates back to the original rate (I'm referring to the ARM loans) ? That way the borrower can keep the home they bought, the bank doesn't take possession of a home that is worth less than is owed on it and I don't have to pay for the fraud perpetrated on the financial institution that bought the loan in good faith. Another thought, let's start seizing the assets of the mortgage companies that put $30K/yr wage earners in $300K homes. Liar loans are fraud, not only has the borrower committed fraud but the original lender has not exercised due diligence. I scrimped and saved for 15 years to build the house I'm in (a modest house at that). Now I as a tax pay am expected to maximize the banks profit? *****! The bank has not and will not lose money IF they don't repo the home."

"Good comment. It's true that borrowers put themselves in that position and don't deserve to be bailed out but neither do the banks. What chaps me is that many of these loans would not default if the bank did not increase the interest rate. I know everyone involved agreed to those terms but its obvious that BOTH the borrower and the lender are at fault. I'm amazed that the lien holder would rather lose money (by raising rates and forcing a default) than make a modest profit (by converting loan to fixed rate at or near original rate). Banks aren't run by idiots, they must strongly believe that the government will bail them out of their self imposed mess and at a profit no less."

"If owners can default on these loans because they have difficulty paying, and the government will step in and pay for them, then I intend to "have difficulty" paying my loans and let the government to step in and pay for mine. And if everyone does that, it will kill this program before it gets out of the door."

Everytime I go on the internet, I find more and more people like myself who are simply disgusted with the notion of a bailout for greedy stupid people.

It's so nice to see some people in this country still recognize that those of us who were responsible and recognized that there was something horribly wrong with the stratospheric prices of housing and chose to wait it out, should not be responsible for those who recklessly (and probably fraudulently) took on more house than they could afford.

"Congress: let the market forces restore housing prices back to where they belong. There will no longer be a housing crisis if prices return to normal. I for one will buy one, if you don't interfere."


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              The Biggest Banks Are The Biggest Beneficiaries

                Look at how well these banks stocks have done:  They are ecstatc at the prospects of being given
         a trillion dollars for mortgage assets that they held which were a few days ago considered worthless "taxic waste".
         Charts here are produced by TigerSoft..   For more information, go to www.tigersoft.com.   If you like our
         work here, subscribe to our Hotline or produce Insider-Trading Tiger Soft charts on your own computer for
         any stock you wish. 


                       Bank of America (BAC -which now owns Country Wide Financial),
                      Citibank (Robert Rubin's employer and new owner of nearly bankrupt WAMU),
                      JPMorgan (JPM)
                      Goldman Sachs (GS is where Paulson hails from) has done in the last few days. 

               Bank of America (BAC -which now owns Country Wide Financial) 
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              Citibank (Robert Rubin's employer and new owner of nearly bankrupt WAMU)
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               JPMorgan (JPM)
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                Goldman Sachs (GS is where Paulson hails from) has done in the last few days.) 
               Only when Goldman Sacgs began its free-fall, did Paulson panic!
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