Another Trillion Dollars Sinks Us to $11 Trillion in Bailouts!

NWOblogger.com Original Article

In another brazen move by the Wall Street Bankers using their strong arm in the Treasury Department, a plan has been approved to purchase ONE TRILLION DOLLARS or more of toxic bank assets. The proposed plan includes the proviso that the monies offered be used for mortgages OR for the buyout of consequential securities otherwise known as "toxic derivatives".

The plan will offer investors the opportunity to purchase margin assets at approximately 5% of their reduced value with the Government (in actuality We the People) taking on the remaining 95% of debt and risk. These "loans" will be guaranteed against "any losses", presumably this means that any margin below the original 5% investment will be reimbursed to the investor.


The proposal sounds quite lucrative to investors, but what does it mean for the economy and the stock markets?

A likely result of this new trillion dollar policy will be an even larger derivatives bubble. Investors may clamor to wedge themselves into these enticing margin loan positions, stacking their clams, and waiting for the deluge to wash over the markets revealing the New World Financial Order.

As investors wait for these margin investments to ripen into profits, side-betting opportunists will invariably try to add their own higher and more unstable layers to an already teetering house of cards with securities and derivatives based on the margin investments.

One thing is for sure, the American Peoples' clams lean on the house of cards with delicate precision and the derivatives are like a tornado wind destined to lay ruin to all.

HOW IT WILL WORK IN PRACTICE
- Bank seeks to sell pool of mortgages worth $100
- Private auction decides that asset is now worth $84
- Private investor and government put up $6 each
- They then borrow remaining $72 from government
- That loan is guaranteed against any losses
- If asset is later sold at higher price, government makes profit and private investor pays back loan and pockets profit.
- If asset is sold at lower price, government and private investors could lose initial investment.
Source: US Treasury
http://news.bbc.co.uk/2/hi/business/7958501.stm