Joshua Bolten and the global Financial crisis -must read

[malaise]

http://onlinejournal.com/artman/publish/article_3857.shtml
Behind the panic: Financial warfare over the future of global bank power
By F. William Engdahl
Online Journal Contributing Writer

<snip>
Paulson seems to have learned from his White House mentor. As co-chairman of Goldman Sachs, according to a New York Times account, in 1998 he forced out his co-chairman, Jon Corzine ‘in what amounted to a coup.’

It is becoming clear Paulson, and his friends at Citigroup and JP Morgan Chase, had a strategy, as did the godfather of asset backed securitization and deregulated banking, former Fed Chairman Alan Greenspan, as I have detailed in my earlier series, Financial Tsunami, Parts I-V.

Knowing that at a certain juncture the pyramid of trillions of dollars of dubious subprime and other high risk home mortgage-based securities would come falling down, they apparently determined to spread the so-called ‘toxic waste’ ABS securities as globally as possible, in order to seduce the big global banks of the world, most especially of the EU, into their honey trap.

They had help. In recent testimony under oath by Eric Dinallo, the superintendent of the New York Insurance Department at the AIG bailout oversight hearing into the AIG rescue by Paulson, Dinallo said that funding cutbacks in recent years directed by the Bush-Cheney administration had reduced the responsible department that should regulate or watch over the $80 trillion in asset backed securities (ABS), which included the toxic subprime and Alt-A mortgage securities and much more. The Bush administration cut the staff of more than 100 people down to one -- yes that was not a typo. One as in ‘uno.’

Was that just ideological budget cutting fervor, or was it deliberate? Was former Goldman Sachs’ man, the man who convinced the president to hire Paulson, Bush’s former director of the Office of Management and Budget (OMB), Joshua Bolten, now the president’s chief of staff, responsible for insuring there was no effective government oversight of the exploding securitization of mortgage assets?

It now would appear that the Paulson strategy was to use a crisis -- a crisis that was pre-programmed and predictable as far back as 2003 when Josh Bolten became head of OMB -- when it exploded, to panic the more conservative European Union governments into rushing to the rescue of US toxic waste assets.
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[DJ13]

1. Link?

[malaise]

2. LOL

Can't believe I didn't post that. Added. :hi:

[DJ13]

5. Thanks! Good article

[angstlessk]

3. I certainly hope people a lot smarter than I can unwind this debacle

and find out 'what really happened'! But should I get my hopes up? (see boosh and his illegal activities while president)

[malaise]

9. We will see

For now it is clear that Bush, Paulsen, Berlusconi and Sarkozy lost big time.
If Dems are serious men will be sent to prison and there will be serious regulations. IF they don't the goons will regroup.

[BrklynLiberal]

4. Very interesting...Thanks for posting this.

[malaise]

7. Note these points

The most interesting development in recent days has been the unified and strong position of the German chancellor, finance minister, Bundesbank and coalition government, all opposing an American-style EU Superfund bank bailout. Meanwhile, US Treasury Secretary Henry Paulson pursues his crony capitalism to the detriment of the nation and benefit of his cronies in the financial world. It’s an explosive cocktail that need not have been.

Germany breaks with US model

In closed door talks well into the evening of Sunday October 5, Alex Weber the hard-nosed head of the Bundesbank, BaFin head Jochen Sanio and representatives of the Berlin coalition government of Chancellor Merkel came up with a rescue package for Hypo Real Estate of a nominal €50 billion. However, behind the dramatic headline number, as Weber pointed out in a September 29 letter to Finance Minister Peer Steinbrück that has been made public, not only did the private German banks have to come up with 60 percent of that figure, the state with 40 percent. But also, given the careful manner in which the government, in cooperation with the Bundesbank and BaFin, structured the rescue credit agreement, the maximum possible loss, in a worst case scenario, to the state would be limited to €5.7 billion, not €30 billion as many believed. It’s still real money but not the blank check for $700 billion that a US Congress under duress and a few days of falling stock market prices agreed to give Paulson.


By initiating state partial nationalizations across the EU, and rejecting the Berlusconi/Sarkozy bailout scheme, the governments of the EU, interestingly enough this time led by the German, are laying a more sound foundation to emerge from the crisis.
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1. France and Italy must be watched
2. Now I understand the Berlusconi visit
3. Merkel is no fool.

And yes, this is a very good article.

[BrklynLiberal]

17. EXCELLENT points!!!!

It seems the Germans are not as dumb as BushCo thinks.

[ihavenobias]

6. K & R, thanks malaise

:)

[gopbuster]

8. Caught the end of a radio interview with Engdahl yesterday....

his opinion is that we are definitely going into a depression scenario and the decline has just started.

[malaise]

10. Yes, but Bush and the Wall Street goons

don't care as long as they grabbed global financial dominance. They have looted their own treasury and the plan was to loot everyone else's.

[gopbuster]

12. I had my doubts at first but the more is coming to light it seems to be looking that way.

[katty]

19. yes, and letting subprime, etal get outta control-a perfect storm

to coverup other agendas as well.

[gopbuster]

14. He also said that the financial elite don't care about throwing us into depression....

they never have before and there is no reason to believe they won't do it again.

[gopbuster]

11. To add he believes it is by design and a move towards global control.

[malaise]

13. Yep but the plan has been thwarted for now

I'll be watching with interest.

[gopbuster]

15. Me too n/t

[gopbuster]

16. He said...Through consolidation they have everything to gain. n/t

[katty]

18. it sure smells like it