infolinks

Monday, April 20, 2009

The Great Banking Swindle of 2009

Washington and Wall Street are now playing a financial con game that would make an Enron executive turn green with envy:

The bank “stress tests” now being conducted by Washington are little more than a shameless hoax: Based on the irrational assumption that the economy won’t get as bad as it already is!

The regulators’ notion of “stress” is a 3.3 percent economic contraction and 8.9 percent unemployment in 2009 ...

But the economy is already shrinking at the annual rate of 5 percent and unemployment is already at 8.4 percent with the Obama administration itself warning that it could hit 10 percent this year!

Worst of all,the rosy earnings that banks announced last week are based on jury-rigged accounting rules:

Rules that allow the banks’ accountants to simply wave a magic wand and ...

  • Instantly inflate the book value of toxic assets they own ...

  • Miraculously vaporize liabilities they are responsible for, and ...

  • Magically erase billions of losses in their quarterly reports – treat them like they never even happened.

Put simply, Washington and Wall Street are now so terrified by the true condition of America’s banks, they have resorted to COOKING THE BOOKS!

Their goal is to try to restore confidence. But ultimately, the true consequence is to shatter trust ... and in the meantime, promote the fleecing of millions of savers and investors who allow themselves to be seduced by this shameless scam.

QUESTION:
WHY are Washington and Wall Street
engaging in this blatant deceit?

ANSWER:
Because they already know the TRUTH
— and it has them TERRIFIED!

The next phase of this crisis, hundreds of banks and other lenders will be pushed to the brink — and OVER the brink — demanding hundreds of billions of dollars; perhaps even trillions in new bailouts.


The above is Martin Weiss's opinion.

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