Paula Rush

Backroom Bear Stearns Deal Exposed

If the American public doesn't wake up soon from the fog they are in, take the time to understand what is going on, we are all doomed to financial disaster. Case in point Bear Stearns. First, I do think it is possible that a collapse could have put a great strain on the financial markets as most people have no idea how interconnected all of these institutions are. They have developed sophisticated financial instruments I don't think they understand. They have credit default swaps, interest rate swaps, they buy, sell, trade, pledge assets to each other the way some would trade baseball cards. Bear Stearns head fraud investigator John Gray gave a presentation that they had found CEO's and mortgage companies were double selling loans to different investors. He said it is easy to do as investors did not speak with each other. I recently discovered another possible way to double pledge loans, its a 1500 member bank ( small banks) organization called Promontory Interfinancial Network. They have developed a financial tool where people can invest millions of dollars and it is all FDIC insured. YES your tax dollars will insure the biggest financial collapse of all times! It seems American Home Mortgage(bankrupt) owns American Home Bank ( formerly Flower Bank) and through this bank they can pledge loans as collateral and take operating capital. The problem is they also have 78 securitized trust where loans were pledged and investors think they own those loans as security. Now if a company is in trouble- Could they pledge a loan into the trust and pledge it into the Bank they control as well? YOu figure it out. The FED in my opinion is hiding the most disasterous revelation which would shake the markets to the very core. In the process of bankruptcy a companies every dealing is laid bare for all to see. They couldn't risk that with Bear Stearns. So hence the back end deal, to keep it all under wraps. The problem is, it won't work, this is a sunami of epic proportions that the FED doesn't have enough money to undo. The only hope of the American people, taxpayers, and small investors is to pray that our government ( CONGRESS - Bush won't do anything) has the stomach to go after the people who walked away with all the money. Will they do it? Right now it looks doubtful, they are in full swing of cover-up, conceal, and protect the criminals. I'm afraid that while everyone is blissfully buying the twisted reasoning for the actions of the FED, the high level Wall Street and the elitist rich are moving there assets out of the American market, preparing for the coming collapse. My opinion, take your money out now, or move it to Dubai ( seems to be the choice of many) and if it all blows over, put it back in. Believe me, remember Martha Stewart, the rich will get the word and jump well before you and I will even know what hit us. WAKE UP- PLEASE!