We have witnessed some remarkable theatrics in the U.S. in the first part of 2009. The U.S. propaganda machine has managed to convince market sheep that the bankrupt components of the U.S. financial crime syndicate have once again become viable businesses.
This sham of the highest order was accomplished primarily through two completely fraudulent devices. The first prong of this attack on rationality was to pressure the FASB – the so-called “accounting standards” bureaucracy to create “mark to fantasy” accounting rules, which essentially allowed the con-men running these fraud-factories to write-in any numbers they wanted on their bottom-lines.
The second, equally infamous deception used to fool the sheep was Tim-the-tax-cheat's bank “stress tests”. This was nothing but a joke to any occupant of the real world - primarily because there was absolutely no “stress” in the “test”. The parameters used to “test” these zombie-banks were better than any rational, best-case scenario for the U.S. economy.
Real unemployment has already grossly exceeded the “worst-case scenario” of the “stress test”. Now, this week, the Federal Reserve has announced statistics on U.S. loans which are absolutely catastrophic. Every category of U.S. debt is simultaneously showing record levels of loan delinquencies, with the exception of commercial real estate – which was slightly below an all-time record. The only reason why commercial loans are not already breaking these negative records was because the crash in U.S. commercial real estate did not begin until two years after the crash in residential real estate.
Here is a question for the brain-dead zealots who actually took Geithner's “stress tests” seriously. Where in the “stress” parameters did it predict record delinquency rates even before the stress tests were completed? The reality is that the U.S. economy is already plummeting downward past all the “stress” parameters Geithner used with one exception: U.S. residential real estate has not had enough time to surpass the “worst-case” figures used by Geithner. That won't take place until the end of this year, or the first quarter of 2010.
Ironically, what the Geithner “stress tests” have now proved is that U.S. banks are not capitalized to a level which will allow them to survive current economic parameters. As market “experts” emerge from their self-induced comas, this obvious truth will become apparent even to these dullards.
The even more ridiculous component of this “dead-cat bounce” for the U.S. financial sector were the fantasy-profits proclaimed by the compulsive liars who run these criminal enterprises. Virtually every significant bank in the U.S. reported improved operating results in the first quarter.
We now know from the loan data released by the Federal Reserve that at the exact moment these liars were claiming improved results and even “profits”, that the borrowers of these institutions were falling behind on their payments at all-time record levels.
Is there still anyone in the world foolish enough to believe that any of these fraud-factories were making real profits at the same time that record numbers of people were NOT making payments on their loans?
By this Wall Street “logic”, if everyone stopped making payments on their loans, then Wall Street banks would be making record profits.
Returning to the real world, those capable of independent thought are now armed with two obvious truths: U.S. zombie-banks are totally unprepared for the HUGE losses which they will be incurring in the next few quarters, with even more devastating losses facing them in the years ahead (see “U.S. mortgage-crisis to get MUCH worse in 2010-11”).
Secondly, based on the record loan delinquencies which we know to be fact, the supposed “profits” reported by the U.S. financial crime syndicate simply represent the largest lies they uttered since this self-created “financial crisis” began – thanks to the new fraudulent accounting system put in place to accommodate such lies.
Finally, as these banks lie with impunity to the markets and their own shareholders, we once again observe the “see no evil”, “hear no evil”, “speak no evil” monkeys – known as U.S. regulators – refusing to perform their statutory duties in combating this blatant fraud.
The “Rule of Law” is now extinct in the United States.