The talking heads are quoting Obama as he flames the fires of populism with anti-Wall Street theatrics.

“They just don’t get it,” he balks, but in fact it’s Barack that doesn’t get it. Sure, now that his appproval is plummeting, he’d like to be seen as taking a tough Rooseveltian stance against the evil “money changer’s” –but he really hasn’t.

The so called regulation that financial lobbyists are “up in arms over” won’t do much good (more theatrics) and the TARP “no strings attached” risk protection guarantee, funded by taxpayers, was not only continued by Geithner, but is in a state of perpetual extension under his “watch”, effectively continuing the tradition of Wall Street collusion Obama claims to have inherited. Geithner, Obama’s man, is proof positive that Obama has no intention of breaking with the revolving door between Wall Street, the FED and Treasury, which so many conflicts of interest have swung through. Geithner is Obama’s Waterloo. His confirmation, along with the enthronement of Summers and the abrogation of Volcker, set the decisive tone for the administration’s economic policy as a whopping failure in the making.

The talking heads, confused that they are, claim that banks “got into trouble” making risky loans and now we’re asking them to take more risks by making more loans. BZZZZZZZZT –WRONG ANSWER, CNN. 
Fannie, Freddie, Wells Fargo, and their confederates engaged in FRAUDULENT UNDERWRITING for the express purpose of bundling titles to questionable income streams, a.k.a. collateralized debt obligations (CDO’s), and trading them for huge profits on the global securities markets. They in fact never “got into trouble” though, as no charges have ever been made, and no one prosecuted. They, and other banks, then hedged the inside risk of this massive fraud in the global credit default swap (CDS) market, and all of this fraudulent activity is FAR MORE PROFITABLE than traditional 7% mortgage loans and origination fees. You make money on the loan, you make more money on the upside selling the securities and you make money on the downside betting on their predictable collapse. You make even more money if Fitch, Moodys and S&P rate the securities AAA (because they are in on the fraud-for-profit game) when you bet against them. The heads reported on Geithner’s complete disregard for the massive fraud epidemic in the FBI report dropped in his lap while at the NY FED, but they can’t quite seem to connect the dots to his continuing role as Treasury Secretary today, under Obama.

And as such, what Obama REALLY DOESN’T GET is that Wall Street banks would be INSANE (considering how truly bankrupt they really are) TO LEND MONEY TO BUSINESSES AT WHAT, 6, 7, MAYBE 9% INTEREST? WHEN THEY CAN SPECULATE AS HIGH RISK HEDGE FUNDS WITH A NO RISK DOWN SIDE GUARANTEE AT 75, 100 OR EVEN 500% PROFIT????

Now there is some legislation out there about returning to Glass Steagall, but it won’t get any traction as long as the clinically confused, like Barney Frank, are working in any form of government at a pay scale higher than assistant grounds-keeper.

Global banks are going to continue to operate as hedge funds (and will pay their high rollers accordingly) as long as they know there is NO RISK INVOLVED. ANY hedge fund with a no risk protection guarantee is going to be wildly successful and pay huge bonuses, and this is what global banking has become.

In fact, the only risk involved for the too big to fails is that a couple REALLY BAD BETS is going to bring down the whole house of cards, and you know what America. SO WHAT? say the banks. If we’re going down, the whole world is going down with us, unless you bail us out AGAIN.

And that’s a bet which Barack appears willing to take. And he’s willing to take it with no financial backing, just the backing of the Country, it’s dwindling middle class, and the dwindling confidence of American debt holders. The banks are ALL IN on that bet. They are going to CALL Barack’s  middle class tax revenues and future debt-holder confidence and RAISE Barack THE END OF CIVILIZATION AS WE KNOW IT (the so called Paulson Panic Play).  But the “as we know it” part of that phrase truly is the caveat because it entails playing by the dirty rules of the monetarist system and it’s flagrant swindles.

You only win this hand by changing the rules of the game, and thus change the “as we know it” part of the equation–by returning to a Sovereign and Constitutional Credit System, as we have recommended for the Sovereign State of Florida. When we do that, we can let the global hedge funds masquerading as banks collapse into the heap of toxic sludge they speculate in because real banks will be mandated, as specified by Article 8 of the Constitution, and the “Too Big to Fails” can pass into history as the whopping failures they truly are, and which no one truly needs anyway.

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