So, they funneled these billions upon billion of US$ into the City of London's private banks. London could only do so much to increase the US$ pool that was coming in. So, London,for a nice fee, funneled the US$ to Wall St. private banks like Goldman Sachs, Bank of America, City Corp, etc.
It was said that the money was coming in tidal tsunamis of US$2 to 3+ billions each morning!
What do you do when you have this volume of US$ coming in. You do what bankers do.
YOU LEND OUT THE MONEY
AT THE BEST INTEREST RATE YOU CAN.
To Warren Buffet because he need US$45 million to buy a company. This is peanuts compared to the money coming in. OK! Let us say he wants a loan of US$19 billion. YEP! That is excellent. That is less that 7 morning inflow of US$ from London. So, you go look to lend to others like Warren Buffet, whilst you remember the Golden Rule of Lending by Bankers:
You lend only to those who do not need to borrow.
The impulsion to lend was so grievous, unrelenting and unremitting that the banks would lend to shaky business and private individuals with suspect collateral.
Now Wall St. Banks had millions of loan documents. They assembled them into sets that consisted with huge loans from top corporations or from the wealthiest of individuals with the best of collateral with middling corporations and middling rich people with good collateral, shaky companies and middling rich people with doubtful collateral. Then they would divide these sets into bundles and get rating companies to give to them Triple A Ratings.
These bundles were known as Collateralized Debt Obligations, CDO,
Now each bundle in effect was as good as money. With one bundle, depending on its estimated value, you could buy a Boeing 747 or a yacht, a world class golf course, a high end French Chateau with money left over.
When the tide of money continued, the banks began to lend it to anyone who would accept it and its interest. With it they could buy a house. So, the poor of America jumped on this opportunity. And at that time the values of houses were constantly rising, On this basis, the poor got personal loans by which to buy a house. Now on the value of the house they could borrow to buy the things they liked and fancied and the holidays that ordinarily they could never afford. Personal debt in America soared.
The banks dared to do these loans to the poor knowing that they could never pay it back because once they got the loan they immediately included it in a CDO and sold it - in America and throughout the world.
The value of all created CDOs was US$1.7 trillion. The return on their sale was US$7 trillion. In this original estimate of US$1,7 as the value of the CDOs, US$1.3 trillion was composed of loans from the poor who simply had no chance to repay their loan.
The revenue generated from the sale of the US$1.7, was US$7 trillion. This US$7 trillion is greater than the entire US Debt.
So, the bankers of the world earned US$7 trillion.
When the 2008 Global Financial Crash came, all the world's top banks involved in CDOs went bust.
Here now is the evidence for the cringing cowardice and total absence of wisdom, wit and intelligence of politicians.
To save the banks, some US$12 trillion of taxpayers money was handed to these
bankers to save their banks.
Yet these same bankers had enriched already themselves to the tune of US$17 trillion.
The question is this:
Who are the people that must be brought
to trial to account for this massive fraud?
To do this you have to find:
Honourable men of Law, Morality, Ethics
with steel in their spines to deal with THRASH!
No comments:
Post a Comment