Ruby
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Ruby asked in Politics & GovernmentGovernment · 1 decade ago

Is the Bank of America buyout of Merrill Lynch really a government bailout in disguise?

Will the emergency bank fund created this year ultimately use taxpayer dollars to prop up Bank of America because of this so-called buyout?

Here is an Interesting take on that topic:

http://www.marketoracle.co.uk/Article6274.html

From that article:

"It appears as if we are witnessing government bailouts using taxpayer money that are being deceitfully disguised as buyouts. Not just with the Merrill buyout but also this newly established $70 billion emergency bank fund, set aside to help out banks with future problems. Where do you think this money is coming from? The banks certainly don't have it. It is coming indirectly either from the Fed or the U.S. Treasury. That is precisely why the Fed just opened up the types of securities for Schedule 2 auctions that can be used as collateral for borrowing from the Term Securities Lending Facility. Now all investment-grade securities can be pledged. In addition, the amounts auctioned have been increased by $25 billion to $200 billion. The problem is that what may be investment-grade today could easily become junk next week. In fact, as I have stated in the past, we are going to see a huge junk bond market soon. Already, corporate defaults are soaring.

You see, the banking cartel – the guys that own the Federal Reserve – have been given a blank check and will make it through this crisis. JP Morgan Chase is already dealing with Bear Stearns so now it was time to ask Bank of America to take over Merrill. And while the money might not be coming directly from the U.S. Treasury, what's the difference? Anyone holding dollars is getting screwed because all of this extra printing is destroying the currency."

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What do you think? Are the taxpayers being deceived by this?

4 Answers

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  • 1 decade ago
    Favorite Answer

    Every dollar printed causes more inflation and costs the US taxpayer 10% extra debt, which is paid to the Fed - their fee under the fractional banking system for printing money the US government used to print, at the cost of paper and ink.

    The Fed's private bank owners, who own the banks that own the banks (so they seem a bit 'hands off', certainly never worth mentioning on any MSM TV channel ;-), bankroll the US economy and fund its political parties. They stand to benefit enormously from a crash actually, because it's been deliberate, and coming for a long time...

    How will they profit? Through being able to buy your assets at junk prices, which means they'll consolidate their ownership of every sector, which means millions of Americans will have their assets seized... by that same filthy rich banking elite.

    They'll blame low interest rates, which they set - and printing excessive money, which they control, because that's what the TV is going to tell you. Many major banks will go out of action, but not those involved in the Fed of course, as they will be 'owed' by all the rest, who they will 'own'.

    The presses are only just getting warmed up folks, printing billions a year is not going to be enough to hold things together economically, so it'll have to be trillions or quadrillions of new notes every year (it's "buy Fed stocks now" time sheeple!). In fact we are already strapped to a fiscal rocket, accelerating until the Big Crash.

    The Big Crash will be a terrible financial, deregulated (because of our politicians ;), privatised bloodbath, over which "it wasn't anything to do with us gov" and "the rules were wrong" will be their assurances, while millions lose their jobs.

    If the system is already screwed by cheap money, printing more money, as they are doing, simply means the US is now being taken towards hyperinflation - 50% per month, within 2-4 years and it could happen literally anytime.

    Why? Falling money values, caused by printing notes at full blast, will leave peoples and governments saddled with debt they can't pay and devalued assets at the same time, especially the main thing ordinary people rely on - housing.

    This will leave millions penniless, who will hand their keys over to... the bankers, for houses, land, cars, businesses, everything - because those interest rates are set to soar like a bird!

    The USA will be bankrupted, bought for nothing by those very same bankers, and because ever rising interest will be due on those loans, the banks will seize your, increasingly worthless, assets.

    Those who paid for their houses will have theirs seized by the government eventually, via mega taxation, to cover that debt on that money they printed (remember?).

    Folks who protest will need to be locked up of course - to make the other people 'safe', criminalising millions and, through a suspension of the constitution, incarcerating them through a permanent 'state of national emergency'... which will enable the government to rule forever.

    The rest will be enslaved, terrified it'll be them next, too frightened and compliant to protest... because:

    "you're either with us or you're against us, stupid."

    Baaaa!

    My next stock market tip is, buy "private security"*, I see a booming market ahead... your army won't lock millions of you up - but they won't stop it either, because the government tells them what to do of course and loyalty is all.

    *Halliburton... ; )

    Instead your army and police are going to be superceded by a privatised paramilitary 'home security force', that will outsource dealing with anti social elements and subversive activity away from the police, cunning eh?

    That's the rest of the script anyway...

    Eventually we'll have to lock up our politicians, or they'll be locking us up and then we'll need a 'mint revolution'... because those who own the money make the rules. ; )

    Source(s): New World Order: the finest mint sauce money can buy. Baaa!
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  • Anonymous
    4 years ago

    That Lewis guy sure looked scared testifying before Congress. Did the White House coerce him? "Oh, well, uh, I'm sure they thought they were doing the right things...." Obviously those (relatively rich) CEOs have no courage. Might lose their jobs? If they had any guts they would have walked out and told the Bush Administration what it could do with the jobs. But they didn't. They deserve their fate. I didn't stand up for the bankers because I wasn't a banker. I didn't stand up for the car companies because I was not a car company. I didn't stand up for the medical industry because I am not part of it. I didn't stand up for the talk radio hosts because I am not a talk radio host. I won't stand up for Agriculture when their turn comes because I am not a farmer. Will anyone stand up for me when my time comes? I don't expect that anyone will. But there's something government doesn't know about me. I have nothing to protect or lose. Hence no fear. I have the faith of a Jedi and the commitment. And when the time is right, there will be millions of me.

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  • Anonymous
    1 decade ago

    What you see now is just standard practice for the U.S. "capitalist" government in a" free market". Only the profits are capitalised, the minute there are losses to be made then the U.S. administration suddenly gets all socialist about them and decides it is society as a whole that should share the burden.

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  • Anonymous
    1 decade ago

    There is no deceit. The facts are all there - where the money is coming from, who's investing etc.

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