subprime winners and losers
Because of our global economy and the ongoing war on terror, Phyllis points out that the current subprime credit crunch could very well be the result of deliberate economic warfare against us and if so what happens next will be far more devastating than 9/11.
"When the French bankers froze billions saying words to the effect that the complete evaporation of liquidity in certain US securitization markets has made it impossible to value certain assets they were telling us that we're on shaky ground," says Phyllis. "And when the Saudis do the same thing -- and the Chinese -- we will be exposed for what we are, a nation existing purely on credit and nothing else."
"While I feel sorry for our own people who have lost their homes, jobs and investments," says Phyllis, "I feel sorrier for the poor people in Third World countries who were suckered into signing trade agreements with the USA because their economies are going to crash first when the final crunch comes."
"Investors rely upon a system of checks and balances (audits) to give them a level
of security as to where their money is parked," says Phyllis, "but when these rogue financial institutions were audited, why weren't the potential liabilities picked up?"
"Also, when credit requirements are relaxed without a corresponding increase in bank reserves to cover the risky loans, you not only have an entirely new class of home owners but a new level of risk, too."
"Have we been misled or deliberately cheated by enemies among us wanting to ruin our economy?" asks Phyllis. "Why didn't someone recognize something funny was going on and blow the whistle? You know, like the pilot training operators who skilled up the 9/11 suicide bombers."
"When the real estate and the mortgage people walked off with their profit, leaving the hot potato subprime mortgages to be bundled together and shipped around the world until they were unrecognizable, did they know they were involved in economic warfare? Or didn't they care?"
"The bankers are all sitting on their profits acting smug as though they had nothing to do with it, and so are the mortgage companies and the real estate people," sighs Phyllis. "Whatever, the finger is pointing very strongly at the government for allowing this debacle to happen in the first place by relying so heavily on foreign money."
"Didn't it tell us after 9/11 to go out and shop and keep the economy afloat?" asks Phyllis. "Well, that's exactly what we have been doing, all on credit, and now look at the mess our shopping sprees are getting us into."
"China's economy is based on our rampant consumerism, and as more of us lose our homes and jobs we are not going to have the money to splash around and we will take China down with us (if she doesn't pull the plug on us first)."
"The damage isn't just in the subprime market," explains Phyllis. "It's also happening in the regular mortgage market. People who qualified for home loans with good credit, a solid deposit and a low fixed interest rate are also experiencing foreclosure."
"Job losses, outsourcing, off-shoring and lax regulation of financial institutions and funders have all contributed to collapsing real estate markets in many parts of America," says Phyllis. "I have no idea what the banks and other lenders are going to do with an inventory of foreclosed properties that they can't auction off to recover even a percentage of their investments, but I do know that by allowing this situation to develop all of the people involved were guilty of colluding in economic warfare."
"News of financial instability in the USA has really spooked international stock markets and because of the global economy each and every one of us -- at home and overseas -- will be paying for this in any number of ways as the effect ripples through."
"Already, many nations are buying Euros not American dollars, and when the USA loses its financial pre-eminence, like Great Britain did after WWII, we are finished as a world power."
"When you have European, Australian, Chinese and Japanese central banks bailing out American businesses you get to wonder whether we are already a third rate nation."
"When a French bank freezes funds, and China threatens to dump their $1 trillion in US currency we should really worry," says Phyllis. "China has been keeping its export wealth in US Treasury Bonds, which they presumed were secure. They are easily converted to cash and if China pulls a trillion dollars out of the US Treasury in fear of an impending crisis due to the ripple on effect of the subprime credit debacle we are sunk."
"Thanks to the globalization programs, the trade agreements pushed by Clinton and by Bush -- and the dishonesty of the corporate media -- our future now belongs to China," laughs Phyllis. "But don't worry, I don't think China is likely to pull the plug until after the 2008 Olympic Games."
"Wherever he is, Osama bin Laden must be laughing his head off at what is happening -- with or without his input -- because economic warfare is ultimately going to be more devastating than any of the actions taken by his suicide bombers -- and less bloody, too."
(Phyllis' story first appeared as subprime economic warfare? and is reprinted with permission.)
"When the French bankers froze billions saying words to the effect that the complete evaporation of liquidity in certain US securitization markets has made it impossible to value certain assets they were telling us that we're on shaky ground," says Phyllis. "And when the Saudis do the same thing -- and the Chinese -- we will be exposed for what we are, a nation existing purely on credit and nothing else."
"While I feel sorry for our own people who have lost their homes, jobs and investments," says Phyllis, "I feel sorrier for the poor people in Third World countries who were suckered into signing trade agreements with the USA because their economies are going to crash first when the final crunch comes."
"Investors rely upon a system of checks and balances (audits) to give them a level
of security as to where their money is parked," says Phyllis, "but when these rogue financial institutions were audited, why weren't the potential liabilities picked up?"
"Also, when credit requirements are relaxed without a corresponding increase in bank reserves to cover the risky loans, you not only have an entirely new class of home owners but a new level of risk, too."
"Have we been misled or deliberately cheated by enemies among us wanting to ruin our economy?" asks Phyllis. "Why didn't someone recognize something funny was going on and blow the whistle? You know, like the pilot training operators who skilled up the 9/11 suicide bombers."
"When the real estate and the mortgage people walked off with their profit, leaving the hot potato subprime mortgages to be bundled together and shipped around the world until they were unrecognizable, did they know they were involved in economic warfare? Or didn't they care?"
"The bankers are all sitting on their profits acting smug as though they had nothing to do with it, and so are the mortgage companies and the real estate people," sighs Phyllis. "Whatever, the finger is pointing very strongly at the government for allowing this debacle to happen in the first place by relying so heavily on foreign money."
"Didn't it tell us after 9/11 to go out and shop and keep the economy afloat?" asks Phyllis. "Well, that's exactly what we have been doing, all on credit, and now look at the mess our shopping sprees are getting us into."
"China's economy is based on our rampant consumerism, and as more of us lose our homes and jobs we are not going to have the money to splash around and we will take China down with us (if she doesn't pull the plug on us first)."
"The damage isn't just in the subprime market," explains Phyllis. "It's also happening in the regular mortgage market. People who qualified for home loans with good credit, a solid deposit and a low fixed interest rate are also experiencing foreclosure."
"Job losses, outsourcing, off-shoring and lax regulation of financial institutions and funders have all contributed to collapsing real estate markets in many parts of America," says Phyllis. "I have no idea what the banks and other lenders are going to do with an inventory of foreclosed properties that they can't auction off to recover even a percentage of their investments, but I do know that by allowing this situation to develop all of the people involved were guilty of colluding in economic warfare."
"News of financial instability in the USA has really spooked international stock markets and because of the global economy each and every one of us -- at home and overseas -- will be paying for this in any number of ways as the effect ripples through."
"Already, many nations are buying Euros not American dollars, and when the USA loses its financial pre-eminence, like Great Britain did after WWII, we are finished as a world power."
"When you have European, Australian, Chinese and Japanese central banks bailing out American businesses you get to wonder whether we are already a third rate nation."
"When a French bank freezes funds, and China threatens to dump their $1 trillion in US currency we should really worry," says Phyllis. "China has been keeping its export wealth in US Treasury Bonds, which they presumed were secure. They are easily converted to cash and if China pulls a trillion dollars out of the US Treasury in fear of an impending crisis due to the ripple on effect of the subprime credit debacle we are sunk."
"Thanks to the globalization programs, the trade agreements pushed by Clinton and by Bush -- and the dishonesty of the corporate media -- our future now belongs to China," laughs Phyllis. "But don't worry, I don't think China is likely to pull the plug until after the 2008 Olympic Games."
"Wherever he is, Osama bin Laden must be laughing his head off at what is happening -- with or without his input -- because economic warfare is ultimately going to be more devastating than any of the actions taken by his suicide bombers -- and less bloody, too."
(Phyllis' story first appeared as subprime economic warfare? and is reprinted with permission.)
Labels: 9/11, audits, china, consumerism, credit, dollars, economic warfare, euros, financial institutions, global economy, losers, osama, saudis, subprime, treasury bonds, war on terror, winners
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