September 29, 2008
Doug McIntosh
No one who peruses the Q files web site should be surprised by the FDIC's seizure of Washington Mutual Bank, nor should anyone be misled by the true nature of what happened. The public statements that there will be "no cost" to the FDIC bank reserve fund is merely a lie disguised as a half truth. Sheila Bair, the FDIC head, made the statement that the "combination of the two banks"..."should be a seamless transition"..."customers should expect business as usual this Friday morning." Business as usual Sheila? Are you serious? Washington Mutual had assets of $310 Billion, versus Indy Mac Bank's assets of $32 Billion. Yet, you Sheila Bair chairwoman of the FDIC have the nerve to say all this is just a bank combination. My math tells me you just made the biggest bank seizure in US history: roughly 10 times bigger than anything before.
How do you start putting the intestines of the banking system back Sheila? The FDIC admitted they had to seize Washington Mutual because "Washington Mutual was under severe liquidity pressure." In other words, the FDIC moved to prevent the total collapse of Washington Mutual. I don't know about you, but that doesn't sound like a seamless transition between JP Morgan and Washington Mutual. It sounds like the banking version of a shotgun marriage. Further, just who is the groom to the blushing bride WAMU? The groom is JP Morgan. WAMU has certainly seamlessly smooched her way up the food chain. Who does Sheila think JP Morgan is?
JP Morgan is the Federal Reserve. Here we have the Federal Reserve nationalizing the banking industry. Between JP Morgan and Citi Group, we will have the Fed with $4 Trillion in assets. At least that is what they are valued at. $2 Trillion of that will be JP Morgan, which paid a paltry $5 Billion dollars for both Bear Stearns and Washington Mutual. TPG group, who invested $7 Billion in Washington Mutual this spring will be left with nothing. Does anyone seriously think investors haven't noticed who gets burnt in these government sponsored fire sales? It is the stock holders and other investors. Now that JP Morgan says it is going to raise $8 Billion in new capital, who is going to buy it? I guess Braying Bernie will just hit the print button over at the mint. This is nothing more than a shell game with the US taxpayer as the pea.
The FDIC solemnly assures us the $31 Billion of Washington Mutual's assets JP Morgan will write off won't have anything to do with reducing the FDIC bank reserve fund of $44 Billion. So Sheila, who do you think is going to eat that $31 Billion? I guess since it didn't come out of the FDIC pile, but the Federal Reserve pile, it doesn't matter. Do you think people won't see through this scam? Do you really think because JP Morgan is footing the bill it makes a difference?
Let's see if I left any charred corpses unaccounted for. Investors in Washington Mutual, out $7 Billion: Check. Stockholders who have lost 95% of their stock value in one year: Check. The Sheeple who have just seen the largest bank failure in US history, ten times bigger than anything before us. Check. The FDIC, which whatever Sheila says, just had to seize a $310 Billion in assets bank to prevent collapse in a chaotic manner. Check. Of course, the stockholders of JP Morgan, and the other Federal Reserve Banks, must be happy. Wait a minute. The Federal Reserve is the main stockholder of the Federal Reserve. The United States is a banking oligarchy, corrupt, arrogant and greedy beyond belief. These sleazy bankers know no limits at this point.
JP Morgan's "seamless combination" with WAMU is nothing more than open theft. It would be better to drain the FDIC to the last farthing, than let this insult to capitalism stand. I will give a flat warning to anyone who is thinking of having anything to do with any financial institution "raising capital." Unless that institution is a Federal Reserve Bank, like JP Morgan, or Citibank, you will be cheated out of your money. You will notice the Arab investors from Dubai who invested $7 Billion in Citibank, unlike those from TPG in Washington Mutual, haven't lost a dime.
Nor will they, if for no other reason they will simply seize physical US assets in repayment. Now you understand why Clinton put all those areas off limits a decade ago. They will be used to pay off the US debt after the economic collapse. Get ready for foreign ownership of the USA.
In a month of open corruption, brazen theft and arrogance which is quite literally beyond description, the NWO has upped its ante. The "rescue" of Washington Mutual is nothing more a blatant attempt to consolidate the US financial industry in the hands of the Federal Reserve banks. We are witnessing the final attempt by insolent globalist money, using the New York based Federal Reserve Cartel, to exterminate regional banks in the USA. The point of creating the vile beast called the Federal Reserve back in 1913 was to consolidate financial power in New York and prevent more populist regions of the US, the Midwest and west in particular, from having the economic power to resist the insolent elite. We are now in the final stages of that consolidation. Assuming Paulson's bailout plan is approved, we will see the total consolidation of the entire US financial industry, real estate industry et al in the hands of the Federal Reserve. The result of that will be an economic system which is communist and a political system which is fascist. Internationale meets Horst Wessel before your very eyes. Only in America.