Peyvast

Yesterday the so called “Obama Administration plan” to save the banks was unveiled . The plan in summary encourages the big boys to buy the so called Financial Toxic Assets (primarily the homes and mortgages of the small guys) at pennies on the dollar by having the government (Taxpayer) assume all risks and losses by insuring and financing the purchases.

This is a no brainer for the rich: Buy the stuff cheap. Keep the hefty profit of the good ones and pass the loss of the bad ones to the taxpayers !

As stock market reaction showed, the Wall Street and the real estate elite, who were all along waiting for this great opportunity to again make MORE billions of dollars at the taxpayer cost, loved this. After all they are the ones who made all the billions on the economic way up and now it is only fair that again they make more billions from the mess they created again!

In fact this was planned even before Obama’s election and all that Obama is doing is to implement it.  In the words of a former Obama fan, a liberal Nobel prize economist, a “cash for trash” policy that is being sold to the public in the name of “change” !

This is exactly what I predicted 7 months before the US elections in a January 2008 article titled “The new world order” where I wrote:

“….The drop in value of real estate and equities or the recession will only hurt the middle class but it does not effect the elite and actually provides opportunity for those who have unlimited cash reserve to acquire the assets of the middle class at substantial discounts, not to mention that Americans have been rubbed of the value of their assets simply by intentional Fed sponsored drop of dollar. The current US deficit and payment of interest by the tax payer to the elite is also serving as this shift of wealth from the middle class to the few……The next rounds of these shift will be served by increase in taxes as well as possible bail outs to be formulated by the soon to be democrat US president………all playing a role in the centralization of power at the cost of loss of individual economic and political liberties………..the current economic problems were not a surprise WHATSOEVER to many but an intended outcome of creating more stable and fertile worldwide grounds for new horizons for creation of wealth for a very limited few who control the financial markets of our planet and therefore in charge of the new world order”

It is as if the only real “change” that took place when it comes to bail-outs was the change of one administration to an-other ! and who else better qualified to implement it than a popularly elected “liberal” African American president! If it was anyone else The People could have been demonstrating in the streets by now!

Stay Tuned for the rest of “THE PLAN” to unfold : The collapse of the dollar and a high Inflation all as future consequences of irresponsible printing of unbacked dollar in the name of stimulus plan…. all in due time!

(Note: Since I do not believe in only criticizing without offering alternatives, I must add that I believe the better approach would have been to let the bad apples fall and the good ones prosper , instead of bailing out, rewarding and insuring the the Wall Street and the bank failures at the taxpayers cost. Careless deficit economics at personal, corporate and government levels got us to where we are and more of it will only add to the problem to the point of no return! For more details view prior blog titled: Mr. Obama “Tear Down this wall”