by The Other Katherine Harris
Oct 1, 2008
Question: What could be worse than Hank Paulson’s $700-billion proposal to pay banksters too much for worthless derivative securities?
Answer: “Helicopter Ben” Bernanke on the loose, dropping more than $1 trillion on the banksters, in loans based on their garbage securities’ FULL FACE VALUE (hyperinflated by up to 200 percent).
While our eyes and hopes were on the House vote yesterday, Bernanke had ALREADY announced another $630 billion in “emergency lending” — most of it secured by the very worst of the dog bets. If these huge Fed loans go bad, as many doubtless will, we get to keep the trash.
The FDIC is now plundering us on a near-daily basis, too, by handing banks they bust to larger banks with the promise that taxpayers will cover vast potential losses. (Citigroup got Wachovia with a stop-loss of $42 billion on a $312 billion loan pool.)
Had Paulson’s scheme been approved, it would’ve been gravy — and it provided (and is still providing) the convenient illusion that elected officials remain in control.
Short of Bernanke’s action yesterday, it was possible to focus on finding fair and rational approaches to our problems, thinking our appeals and the Congressional vote had meaning, but now I’ve reluctantly concluded that a financial coup d’état hasn’t merely been attempted. And I’m not sure what, if anything, can reverse it.
The players will string out the denouement for as long as they can — as they’ve been doing with all their other moves — while they keep grabbing cash, doing deals and generally staking out strong après-deluge positions. That gives us an interval before Big Gotchas resound from havens like the Caymans and Switzerland, Paraguay and Dubai, but what’s to be done with the time? Especially with a brigade of our own soldiers under Homeland Security control, tasked from today to keep us from getting “unruly”.
As Shrub said last week, “This sucker could go down.” America was his sucker — now bankrupt and sinking according to plan.
The Bloomberg story describing the Fed’s latest move suggests a similar fate for residents of the European Union, where “rescue” efforts are also underway — and the Brits, we know from other sources, are under even more constant surveillance than Americans. All of us uppity types who believe we deserve to live decently again, as we did before Thatcher and Reagan, are a threat to the greater profit of our global masters and have to be brought into line. Pounding us with the banksters’ quadrillion-dollar derivatives bomb should just about do it.
In my more than 50 years, I’ve never before felt such despair — although the level has been steadily increasing lately. Conversations with friends and family have often turned to what we’d do if we were younger. “Emigrate” was the top answer, but to where? A former military man near 80 said he’d raise an army.
Ben’s helicopter is in the air now. What will you do?