Bailout? I think not.

Everyone keeps talking about the "Government Bailout" of the big banks and wall street companies. Why does everyone have such a difficult time recognizing theft and criminal activity when they see it?

I grew up in East Los Angeles. I know crime when I see it:

Between 2000 and 2007, the banking institutions in America with virtually zero oversight from both mortgage guarantee operations (Fannie Mae & Freddie Mac) and zero interference from the federal government made millions of loans to people they knew had no way to pay back the borrowed money. Each time they made these loans, they then sold the loans to Wall Street as “mortgage backed securities” all along they made billions in interest, commissions and origination fees. Then, in 2007 and 2008 when the entire house of cards collapsed, the banks decided to just stop making loans. This is the strange part: Banks make money by taking the money you deposit in your savings, checking and money market accounts and lending it out to people and businesses who want to borrow it. The difference between the interest they charge on borrowed money and the interest they pay you while your money is on deposit is profit. This profit when combined with earnings on invested money is the bank’s revenue. Since they were not making any loans, and all of their investments were losing value, they were not making money…. Right?

Wrong… the banks told the federal government that they would not be able to survive unless they were given hundreds of billions in TARP loans. Then when the federal government gave them the billions of our tax payer money, with no way to track where the money went or what it was used for the banks simply had big parties, paid huge bonuses and waited for the stock market to crash. This happened in the first week of March 2009. (The DJIA fell from 14,000 in October 2007 to 6,600 in March of 2009.) The beauty of the situation was that the banks and financial institutions caused the crash by selling investors these broken loans, then used our tax dollars (in the form of TARP loans) to buy stocks and investments at the very bottom of the market beginning in March of 2009. It was a beautiful play by the banks. Then finally in March of 2010, our elected officials emerged from every back room in Washington, came forward and “DEMANDED ACCOUNTABILITY” from every bank and financial institution that borrowed TARP funds. The banks responded by saying "NO" to accountability and all of a sudden, they started paying back the hundreds of billions in TARP money they had borrowed in 2007 and 2008. If the banks were so broke where were they getting the money to pay back these TARP loans?

The money came from the sale of securities purchased by the banks which had grown considerably over the year the banks had kept it invested in the stock markets. the banks had also made enormous gains on the investments they made using the TARP rescue money. This is how they "survived" the "financial crisis".

Why was the money handed out without any accountability then after the scam was pulled and the banks had made trillions in gains from our “borrowed” tax dollars now everyone who had signed the legislation that gave the banks our money in the first place all of a sudden demand accountability?

Simple… The banks and financial institutions own and control our elected officials. Every elected official depends on these kinds of back room deals to provide money for kickbacks that pay for everything from election contributions to all manner of criminal debauchery found at every level of public office.

Since most people choose to remain uneducated and simply refuse to recognize this activity by banks, financial institutions and elected officials as criminal activity, the guilty keep on doing it. The elected officials who are honest wind up getting set up and black balled or kicked out of office for ridiculous scandals.

People really need to wake up. Tell a friend about this blog.... maybe some lights will go on in people's heads!!

That is my opinion…What do you think?