Mudcat Café message #3043448 The Mudcat Café TM
Thread #133907   Message #3043448
Posted By: Donuel
30-Nov-10 - 07:08 AM
Thread Name: BS: Who has all The Money?
Subject: RE: BS: Who has all The Money?
No, it started with Wall St. USA.

They made bets (CDOs) that certain bonds would default.
Special Insurance companies took the bets.
Wall St. helped make certain bonds default by deliberately short selling them.
THe bonds went bust and the huge insurance pay offs came due.
The Insurance Companies did not have the $ to pay.
The US middle class was made to pay for the insurance payouts in a stunning bail out.

Wall St. sold fruadulent bundled mortgages worldwide.
They sold Credit Default Swaps worldwide.
They sold derivitives (which are merely a swindle via advanced math) worldwide.
They sold purified bull shit by "bribing" the Bond Rating Companies to give junk a triple A rating.

The owners of the FInance banks and the agents of the finance banks made about 15 to 20 cents on every insurance bet and other swindles even if there were huge losses. They did not get all the money from all the bets because the 93 trillion dollar total amounts of outstanding bets is more money than exists on the planet earth.
Goldman Sachs got first dibbs on all the bail out money. It first went to AIG, then to Goldman Sachs.

So there are real bets that will go unpaid while the working class is saddled with the gambling losses of the rich.

NOTE the rich did not get all the money lost. They only got a small percentage from various investment schemes but 15% of a trillion is still a big piece of change.

For a crooked financier to make $700 million dollars by betting on bond failure, the total amount of money lost to everyone else is about 9 billion.

The reason Wall St. could do this was due to recent deregulation and a 60 year entrenchment with money to buy the laws they wrote themselves to be passed by Congress.

Is it fair? Of course not.

The last biug fiancial rip off was the savings and loan scandel which landed nearly 1000 people in jail
Wall St. learned what laws to repeal to steal with impunity and has thus far had ZERO people go to jail despite the fact that this current financial rip off is 40 times bigger than the savings and loan scandel.

PS
I once worked for BS. Bear Stearns.