Taxpayers May Be Liable for Billions From Bear, Mortgage Rescue

[AlphaOmega7]

Taxpayers May Be Liable for Billions From Bear, Mortgage Rescue

By Craig Torres and James Tyson

March 26 (Bloomberg) -- Even as the Bush administration insists it won't risk public funds in a bailout, American taxpayers may already be liable for billions of dollars stemming from Federal Reserve and Treasury efforts to quell a financial crisis.

History suggests the Fed may not recover some of the almost $30 billion investment in illiquid mortgage securities it received from Bear Stearns Cos., said Joe Mason, a Drexel University professor who has written on banking crises. Treasury's push to have Fannie Mae and Freddie Mac buy more mortgage bonds reduces the capital the government-chartered companies hold in reserve at a time when foreclosures and defaults are surging.

Regulators ``are playing with fire,'' said Allan Meltzer, a Fed historian and economics professor at Carnegie Mellon University in Pittsburgh. ``With good luck, none of these liabilities will come due. We can't expect that good luck, and we haven't had it.''

more...http://www.bloomberg.com/apps/news?pid=20601087&sid=aNXDBlrk1H1s&refer=home

[Issachar]

Any "money" that comes from the Federal Reserve is debt. National debt. National debt is nothing short of a tax on future US citizens; i.e. our children and our children's children.

So no matter how they word it, the bottom line is, taxpayers pay. The central banking system only exists as a means of maintaining a fiat economy as long as they can and the international bankers never lose ........ in this world. When one understands what a fiat currency is, how it works and why it exists, then one will see why eventual collapse is intrinsic to paper money. It is a machination of men and anything man does cannot last forever due to his inherent sin nature. This is why I don't get upset or even concerned about the economy. It is doing as expected. I watch it though because it will have an effect on my family and it is a great marker of the times, imho.

Issachar

[I'm all 67X]

Good point Issachar, somehow I don't think that bill will come in the mailbax for us.

I just posted the following in another thread. Here is some wisdom from years past:

You are a den of vipers and thieves. I intend to rout you out, and by the Eternal God, I will rout you out... If people only understood the rank injustice of the money and banking system, there would be a revolution by morning."
President, Andrew Jackson

If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks...will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
President, Thomas Jefferson

History record that money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.”
President, James Madison

The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest.”
President, Abraham Lincoln

The dollar represents a one dollar debt to the Federal Reserve System. The Federal Reserve Banks create money out of thin air to buy Government Bonds from the U.S. Treasury...[thus creating] out of nothing a...debt which the American people are obliged to pay with interest.”
Congressman, Wright Patman

The real menace of our Republic is the invisible government which like a giant octopus sprawls its slimy legs over our cities, states and nation. At the head is a small group of banking houses... This little coterie...run our government for their own selfish ends. It operates under cover of a self-created screen...seizes...our executive officers...legislative bodies...schools...
courts...newspapers and every agency created for the public protection.”
N.Y. Mayor, John Hylan

All the perplexities, confusion and distress in America arise not from defects in their Constitution or Confederation, nor from want of honor or virtue, so much as downright ignorance of the nature of coin, credit, and circulation.”
President, John Adams

We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the FED. They are not government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers.”
Congressman, Louis T. McFadden

I have unwittingly ruined my country… We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”
President, Woodrow Wilson

[HisAlways]

Another reason to NOT vote democrat. Obama and Clinton are both asking for billions to bail out these mortgages.

McCain says let them take care of themselves, which is how it should be.

LESS government, NOT MORE !!

[Issachar]

McCain is rightfully against the bailouts, but he has no say in it. The Federal Reserve is neither federal or a reserve. It is private bankers. The US is in debt to them and the Word states that the borrower is slave to the lender. If the Fed wants to bail out some of their buddies, they will. That is why the federal reserve system; i.e. central bank, is in violation of the Constitution: Article I, Sec. 8.

Issachar

[Sharon]

Well I read barrel of gas is to go to $85-$90 a barrel due to Cheny's visit with Saudis but we will not see it until much later they said. When it goes up they charge us more immediately, but don't understand why we have to wait until about 2009 possibly? We should see it go down immediately is my thought. But don't you think the government is making much money on the taxes from the high price of gas and this will help pay for the Bear and mortgage crisis some?

[I'm all 67X]

McCain is rightfully against the bailouts, but he has no say in it. The Federal Reserve is neither federal or a reserve. It is private bankers. The US is in debt to them and the Word states that the borrower is slave to the lender. If the Fed wants to bail out some of their buddies, they will. That is why the federal reserve system; i.e. central bank, is in violation of the Constitution: Article I, Sec. 8.

Issachar

That is exactly right. Candidates can say, I think/we should/there ought/I'd like/we need to/etc. until they are blue in the face. In the end it is pandering as the money is the leader, not the man. Just as we all think things are not right, what are we able to do? This ain't no David vs. Goliath thing. If it were, there'd be hope to defeat it.

I like your reasoning Issachar, very level and Truth-driven. We are simply in for the ride, hang on.

[can4christ]

Another reason to NOT vote democrat. Obama and Clinton are both asking for billions to bail out these mortgages.

McCain says let them take care of themselves, which is how it should be.

LESS government, NOT MORE !!



Another reason to not vote democrat or republican, they OWN BOTH PARTIES.
McCain will also sign us up for a global warming tax.

[I'm all 67X]

Another reason to not vote democrat or republican, they OWN BOTH PARTIES.
McCain will also sign us up for a global warming tax.

Amen to that. :thumb