What if it were ALL ONE BIG LIE!!!
Our Gardner Bros. buddies, being English majors and all, really have little background in analyzing fraud............do they have what it takes to analyze fraud....a systematic fraud??????
So we have this out this morning regarding Bernanke and Paulson's representations last Fall:
Federal Reserve Chairman Ben S. Bernanke and former Treasury Secretary Henry M. Paulson Jr. misled the public about the financial weakness of Bank of America and other early recipients of the government's $700 billion Wall Street bailout, creating "unrealistic expectations" about the companies and damaging the program's credibility, according to a report by the program's independent watchdog.
But an audit released Monday by TARP Special Inspector General Neil Barofsky says senior government officials and Wall Street regulators, including Mr. Bernanke and Mr. Paulson, had "affirmative concerns" that several of the nine institutions were financially shaky.
"By stating expressly that the 'healthy' institutions would be able to increase overall lending, Treasury may have created unrealistic expectations about the institutions' condition and their ability to increase lending," the audit says.
"Treasury and the TARP program lost credibility when lending at those institutions did not in fact increase and when subsequent events - the further assistance needed by Citigroup and Bank of America being the most significant examples - demonstrated that at least some of those institutions were not in fact healthy."
Although probabaly maintaining a strong command of the English language, Mr. Barofsky is an expert on fraud and misrepresentation....so his opinions would be probabtive on the subject.
What if our banking system is really insolvent, same with our pension funds, and many other financial institutions? What if many companies are simply staying in business not because of generating cash flow, but simply to extend debt so credit default SWAPS don't pay off while destroying the once profitable competitors around them?
What if the following is the real state of the economy and much of what is currently driving the economy right now is simply extending credit to insolvent businesses and government?????
NEW HOME SALES DOWN 80%
STEEL IMPORTS DOWN 75%
DOMESTIC AUTO SALES DOWN 70%
GENERAL AUTO SALES DOWN 50%
NON SCHOOL ATTENDING 16-24 YEAR OLD UNEMP 52%
ARCHITECTS UNEMPLOYMENT 50%
REAL ESTATE SALES/MORTGAGE INDUS UNEMP 50%
AIRLINE WORKERS COLLECTIVE INCOMES DOWN 50%
HOTEL OCCUPANCY UNDER 60%
RECORD MORTGAGE DEFAULTS
RECORD CREDIT CARD DEFAULTS
RECORD COMMERCIAL REAL ESTATE DEFAULTS
FDIC OUT OF MONEY
FHA OUT OF MONEY
PENSION GUARANTY OUT OF MONEY
RECORD UNDERFUNDED PENSIONS
GOVERNMENT SPENDING TWICE ITS RECEIPTS........
CORPORATE INCOME TAXES DOWN 60%
STATE TAX REVENUES EVAPORATING AT RECORD RATES
GOVERNMENT SLASHING WORKERS
HOSPITALS SLASHING WORKERS
POLICE DEPARTMENTS SLASHING WORKERS
FIRE DEPARTMENTS SLASHING WORKERS
SCHOOLS SLASHING WORKERS
UNIVERSITIES SLASHING WORKERS
ALL AT THE SAME TIME
Do our pension funds have any value??? What about our retirement accounts??? How can we pay social security and medicaid if few are working??? Why are we bonusing bankers billions for fraudulent representations??? William Black, the chief prosecutor for the S&L crisis has raised the issue....so has Mr. Barofsky.....and a number of others.......it will be interesting to see what the Gardner Bros. think about what is going on...........and how we should deal with it.