The Daily Capitalist
Stockman On Budget And Downgrade
By Jeff Harding August 11th, 2011
This is an interview of David Stockman on Bloomberg Radio today by Kathleen Hayes. David goes into the budget crisis and the downgrade. As usual he pulls no punches. “We have a far worse fiscal situation….by 2012, 2013, 2014… the deficit situation is going to be dramatically worse and our ability to cope will be almost non-existent….”
This is an excellent interview on Bloomberg Radio which can be heard
by Going here. Hayes and Stockman discuss the US Budget and recent Downgrade and the effect it is and will be having on America.
By DEADLY CLEAR
David Stockman, former Director of the Office of Management and Budget (1981–1985) until booted out for his candor, discusses the Federal Reserve and its role – precisely Ben Bernanke and his influential role in shaping the downfall of our government. What Mr. Stockman does not discuss in detail is what is at the core of this economic meltdown… as Paul Harvey would say, “the rest of the story.”
How does this affect the current American mortgage scandal and the fraud perpetrated on the homeowner and invested pension recipients?
The downfall and total collapse of the American economy is precisely centered around UNREGULATED derivatives aka securities [fraud] Ponzi scheme that has been allowed to operate without oversight for too many years. Wall Street used American mortgages (and you don’t have to be in foreclosure to be affected) as a basis and scammed investors. Many investors were the pension and retirement fund recipients, for example: government workers, unions and corporate retirement beneficiaries in America and around the world… Bilked to the tune of over $140 TRILLION! (Editor’s Note: Some economists believe the figure is likely higher than $600 TRILLION)
The US Debt is so overwhelming, the current administration and Congress are in a “reactionary” mode rather than a proactive long term fix.
When you have a child that steals from a store – what do you do? Hopefully, you confront the issue and make the child return the pilfered item. What do you do if he ate it? Do you ignore the problem? Of course not, you make him admit that he stole the candy to the store owner, pay for the candy and make the child pay you back in some form of punishment.
Well, that’s what needs to be done here with Wall Street. In this case they ate the candy. The government paid some of their debts with TARP and Treasury funds – but we don’t have enough money to finance the entire theft orchestrated by the cartel.
You see, we didn’t intercede when we should have. When this criminal activity was young the country was embracing a “Montessori Behavior Management” philosophy. It was about allowing the tantrums and having dialogue rather than the previous generation that believed in taking the child directly to the wood shed. Mr. Clinton and Mr. Bush and their pals in Congress allowed these unruly kids to gang up together and the theft got out of hand.
So, now labor, taxpayers and homeowners (and soon to be retirees) are suffering and the administration, like parents, is powerless to cure the fleecing of America – EXCEPT…
When this gang organized its crime it had a masterful plan. They would use people’s property (collateral) as bait to steal money from investors and insurance companies. Now, they had been doing this for a lot of years, but by the turn of the century technology entered the plan and made it even easier to develop patents and licensing programs to assist them in their scheme and target their victims. This is where the random theft turns into “Malice aforethought“.
When the leaders in government can come to grips with the fact that this was the greatest swindle of all time and the monies they have taken for their political campaigns were and are funneled from this gang or cartel… and that they are actually spending the retirement and pension funds of government and union workers and 401k beneficiaries, not to mention the proceeds from fraudulently foreclosed homes and scammed insurance companies – MAYBE, just maybe a light bulb of integrity might begin to shine… a Jiminy Cricket moment and they will realize this is “blood money”.
A parent encouraging and accepting the unjust rewards of a robbery is aiding and abetting. This precisely translates to political campaigns – politicians KNOW these banks have committed sins against the country – and the world. To take their tainted money and use it for TV, radio and newsprint advertising and their campaigns is unconscionable. The only thing we should be taking from the banks right now – this minute – are the American properties the banks are holding as assets to prop-up and continue to fund their illegal scheme(s). Take over the mortgage loan properties now – before banks like Bank of America bankrupt themselves – as Lehman did taking the homeowner and REO property assets with them fueling lawsuits and clouded title issues all over the country.
WARNING: If you are a State politician or Governor with a securities debt in BofA, aka Merrill Lynch, Morgan Stanley, Citi, etc. – better consult a good bankruptcy attorney. Chances are you will never see a cent – even if you have already instituted a lawsuit or settlement deal. Before it’s too late – take back your mortgaged properties, foreclosures and REOs in lieu of the cash – you’ll make out better in the long run. But don’t wait too long the clock is ticking. This is worth a special [non-partisan] session – as David Stockton noted, “the deficit situation is going to be dramatically worse and our ability to cope will be almost non-existent….”