The job of government is to provide honest money and a level playing field in the markets. Oops! There is no Constitutional mandate to bail out reckless crooks.

As long as the Federal Reserve remains in cahoots with the US Treasury, the Puppetry Presidency and the rubber-stamping Congress, nothing will change. So what if you get rid of a few bad apples but not all of them? Morgan Stanley, Goldman Sachs, Bank of America and other Wall Street parasites are more than capable of spoiling the remaining fruit. All entities are corrupt, compromised and emboldened. The beast just gets bigger and bigger.

The problems are systemic. The present bailouts are no surprise to those who have been paying attention. Who exactly is being bailed out and who is getting shafted? Let’s check it out.

I’ll skip to the bottom line for those of you short on time. If you’re playing poker with professionals and you don’t know who the ‘mark’ is… you have a problem. It is the same problem brought upon the American scene in 1913.

What we are now seeing is a culmination of the multitude of problems. It simply demands to be addressed. Here are a few historic problems we face:

1. Nationalization of Freddie and Fannie
2. Rescue of money market funds
3. Mortgage bailout to banks to the tune of $700 billion proposed
4. AIG bailout
5. FDIC bailout
6. Foreign holders of US originated toxic entities are being bailed out
7. Wamu taken over by JPMorgan to avoid impacting limited FDIC funds
8. A continuing cascade of failing derivatives

Not bad for starters, and I do mean starters. The Fed and Treasury have put together a rescue package. There are no assurances this will be the final rescue. It is not hard to tell exactly who is being rescued at whose expense. Let’s take a quick look at some of the more onerous terms of the Bernanke-Paulson “rescue” plan. Variations of the plan have included the following:

• There is a clause that states stock accounts can be attached by failing brokerage accounts. That would be your stocks getting raided.
• Congressional oversight is bypassed with this legislation and Wall Street gets even more power.
• The planned legislation is to be passed without assigning blame. Nice try.
• Paulson’s old firm, Goldman Sachs, is set up to receive whatever valuable assets come from this shake out. Paulson is personally exempt from civil or criminal liability through this presented plan. Hello.
• Fraudulent actions by AIG and other fascist (government connected corporations) entities never see the light of day.
• The remaining institutions like Morgan Stanley, JP Morgan and Goldman Sachs have consolidated power and are free to continue fraudulent actions. The games continue.

Nothing is being reformed! The day of reckoning is merely postponed.

Who are the losers in this scenario?

1. Taxpayers
2. Homeowners… little to no relief here
3. Anyone who holds US Treasuries or the US dollar. Both domestic and foreign holders will get hosed.
4. The US economy has to absorb these excesses
5. Anyone who deals with increased banking and financial fees in the coming decade

Who are the winners?

1. The fraudulent status quo (Fed, White House Puppets, Congress and corporate friends)
2. Irresponsible banks and financial players who brought forth toxic products that caused this mess
3. Hedge funds and derivative traders

This is clearly a proposal where rape victims get repeated exposure. Anything short of a complete house cleaning is insufficient. You cannot depend on the corporate media to tell you what is transpiring. They aren’t just compromised… they are also corrupt.

Do yourself a favor… read back through the initial fourteen segments in this series and see if every bit of this present fiasco wasn’t long ago foreseen. You’ll have a rare understanding of the times. You are looking at central planning, not free markets. Central planning is a failed communist strategy.

The Federal Reserve and its fraudulent money are at the core of our present problems. If you celebrate this bailout, you can expect a short party. Various markets are undoubtedly being pushed in the desired direction on a short-term basis. That is a disastrous long-term strategy. The US dollar and our Treasury Bills are in the crosshairs. There is no free lunch.

Who will pay in the end? Bankers, homeowners, taxpayers, the US dollar or US Treasuries? This bailout is primarily about the banks.

PS. This is the 15th chapter in a year-long series written by Russell about the dishonesty and fraud in America’s financial system. All previous articles can be found at Investor’s Daily Edge here.

Source: Oh, Say, Can You Still See? Part 15: The Crooks Love a Crisis

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