Most of the recent financial news last week centered on the upcoming FASB  “rule change-changes” on mark to market, as the pendulum of lunacy swings again toward reason for year-end.

Mark to fantasy accounting changes will simply reveal what we’ve been maintaining since long before the “stress test” scam–namely that insolvent banks are still insolvent, despite the slight of hand maneuvering that allowed them to show enormous fantasy profits in Q2 and pay out egregious sums to traders and top execs, all resulting in the highest proportion of income inequality in the history of modern civilization.

Funded by taxpayer bailouts, the top one-hundredth of one percent of American earners took home 6% of total U.S. wages, a figure which has nearly doubled since 2000. You can Google top paying jobs in America and you’ll get historical data regarding anesthesiologists making $200,000 per year, but with the average Goldman Sachs employee earning 300% of that figure, it’s fairly obvious that predatory speculators and the international banking dynasties that front them are where the money is going, as they destroy millions of jobs in the process.
And here’s the financial condition of some of our venerable institution’s balance sheets, if you take into account the worthless fraudulent securities they still hold as toxic assets:

*Regions Financial Corp’s (Alabama) loans were worth $22.8 billion less than balance sheet. Its shareholder equity was just $18.7 billion. Wipeout – forget about that 3.5 billion in taxpayer funded bailout.

*Bank of America loans were worth $64.4 billion less than balance sheet. This is 58% of Tier 1 equity. This difference had grown by $17 billion in six months. This, despite your generous taxpayer funded bailout of 25 billion. I didn’t even get a Thank You card from Ken Lewis–did you?

*Wells Fargo loans were worth $34.3 billion less than balance sheet, equal to 70% of its Tier 1 common equity. This difference had grown by $19 billion in six months. (Sorry Warren, not like we didn’t warn you). I guess their 25 billion dollar bailout didn’t cut it either.

*SunTrust Banks’ loan market values were $13.6 billion less than balance sheet showed; its Tier 1 equity is only $11.1 billion. Wipeout.  Bye-bye 3.5 billion dollar taxpayer bailout!

*KeyCorp’s loans were worth $8.6 billion less than book value; its Tier 1 common equity was only $7.1 billion. Wipeout. Say Bye-bye to your 2.5 billion dollar bailout (that your grandkids will be paying the interest on with taxes and inflation, rationed health care and other reduced social services and record breaking joblessness month after jobless month).

* Fannie Mae and Freddie Mac ? – Let’s not even go there! We’re approaching AIG territory. I can’t count that high this early in the morning.

And so the next round of major “save us from extinction” bailouts will commence as scheduled during black October, as Nation-destroying debt crushes all hope of the America that once was, amidst the growing momentum of what may be our first instances of violent revolt and martial law – less than two months away.

And in other news was the death rattle of Pelosi’s “undisputed victory votes” on Healthcare–again, as predicted weeks ago. Healthcare in America has become so contorted, distorted and over-reported that it can no longer be understood or rationalized (not to be confused with rationed–that it can be).

Leadership, if there was any in Washington, would do well to adopt the basic tenets of COMPETENCE, CONVICTION, CONSISTENCY & TRUST, all of which are in very short supply on Capitol Hill. It is clearly the well deserved mistrust of government that has raised the level of ugliness in town hall meetings to its current level. That being the case, no rational discussion can take place on Healthcare, much less any critical thinking, because the American people do not know who to believe or who they can trust.

These days, no one does – not even the special interests. And sadly, if you go back and read the posts in this blog, you will see prediction after prediction bearing the fruit of truth. But unlike our friendly, credit default swappers, I choose NOT to profit from the predatory deconstruction of America.

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