Greece And ECB Blow Whistle On US Bank Fraud Scam That Caused 2008 Financial Crisis.

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For those of you who have been reading my blog since 2008 Financial Crisis might remember this clip from my youtube channel

What caused the Stock Market Crash? Details of the Credit Default Swaps scandal revealed. Wall Street insiders have been running a mortgage insurance fraud scam. Exposed wall street executives and hedge fund managers have scammed the government and caused the stock market crash of 2008.

 

Well, Deja Vu via Bloomberg. My comments in Bold

Greece Considering Legal Action Against U.S. Banks For Crisis

May 16, 2010, 12:02 AM EDT

By Timothy R. Homan

May 16 (Bloomberg) — Greece is considering taking legal action against U.S. investment banks that might have contributed to the country’s debt crisis, Prime Minister George Papandreou said.

May I add that when I broke the story that these banks where causing the financial collapse in ’08 the Fed didn’t want to listen

“I wouldn’t rule out that this may be a recourse,” Papandreou said, in response to questions about the role of U.S. banks in the crisis, in an interview on CNN’s “Fareed Zakaria GPS.” The program, scheduled for broadcast today, was taped on May 13. Neither Papandreou nor Zakaria mentioned any banks by name.

Of course not. And don’t kid yourself, this doesn’t stop at the banks

U.S. stocks fell and the euro slumped on concern that Europe wouldn’t be able to contain the debt crisis stemming from Greece. The Standard & Poor’s 500 Index declined 1.9 percent May 14, while the euro fell below $1.24 for the first time since November 2008.

If you have been reading my coverage of the global financial crisis then this is no surprise.

Papandreou said the decision on whether to go after U.S. banks will be made after a Greek parliamentary investigation into the cause of the crisis.

Please do investigate. Investigate way back to 2008 when I told everyone they were holding our entire financial system hostage.

“Greece will look into the past and see how things went,” Papandreou said. “There are similar investigations going on in other countries and in the United States. This is where I think, yes, the financial sector, I hear the words fraud and lack of transparency. So yes, yes, there is great responsibility here.”

The SEC and the Credit Ratings Agencies are in bed with these crooks just as much as the MMS is in bed with Big Oil. The lack of transparency goes way beyond the banks.

Speculators

In the days leading up to the May 10 announcement of a loan package worth almost $1 trillion to halt the spread of Greece’s fiscal woes, European Union regulators were examining whether speculators manipulated the prices of bonds and equities and contributed to the crisis.

Really, manipulating the cost of Sovereign debt bonds. How can that be? Again, no one listened when they used the same tactic to trigger defaults by getting California’s credit rating cut and hence causing California’s current financial crisis. And please stop calling these illegal insurance polices ‘equities’.

The Committee of European Securities Regulators said on May 7 it was investigating “exceptional volatility” in the markets and would work with other regulators, including the U.S. Securities and Exchange Commission, as part of a coordinated clampdown.

No. Banks operating under the guise of hedge fund’s will trillions of dollars of leverage. No company should have power to move the markets the way these guys do. Humm? I wonder if that is what caused the Flash Crash making the Dow Jones drop almost 1,000 points in minutes. Where are the regulators? Sitting around, scratching their heads. Which way did he go George? Which way did he go

European Central Bank President Jean-Claude Trichet said May 6 that he was concerned about speculation in bond markets using credit default swaps. “By first buying the CDS and then trying to affect market sentiment by going short on the underlying bond, investors can make large profits,” he said.

Finally. The pay dirt. Did I actually here it out of a government officials mouth? There has been an unspoken bond not say it. Buying Credit Default Swaps and then shorting the underlying security to collect the insurance payout on the the CDS. Reading between the lines here, this is not good for US-Euro relations. I mean that is a naughty curse word. He is blowing the damn whistle. Government crooks on both sides of the Atlantic have known about it since at least 2008 when I made that video and it was much discussed as was the content on my blog which related to that video. And to be honest, if a lay person like me found out about their little crooked scam then the government must have known about it much longer. And by government of course those in bed with Wall Street knew but the “broader” government and not just those specific agencies.

I just have to be honest here. I don’t think most people realize just how significant this is, for the ECB to be blowing this whistle.

It was the reason the markets crashed in 08. It wasn’t the actual mortgages. The overall debt outstanding on mortgages could have easily been absorbed by the feds. It was the over leveraged CDS on the mortgages which was valued at $60-80 trillion dollars that was the problem.

Credit-default swaps are derivatives that pay the buyer face value if a borrower — a country or a company — defaults. In exchange, the swap seller gets the underlying securities or the cash equivalent. Traders in naked credit-default swaps buy insurance on bonds they don’t own.

Ok. Hold up there jack-o, lets tell the truth. A Credit Default Swap does not require a default to be triggered. A CDS can be triggered for any credit event. While defaulting on repayment is a credit event, so is a credit rating being cut. So when S&P cuts a rating, insurance payouts cutely named Credit Default Swaps make somebody really rich

In the CNN interview, Papandreou said many in the international community have engaged in “Greek bashing” and find it easy “to scapegoat Greece.” He said Greeks “are a hard-working people. We are a proud people.”

I have to agree with Papandreou there. I have blogged about it here. It’s all propaganda to make us not feel bad for Greece getting it shoved up their rears

“We have made our mistakes,” Papandreou said. “We are living up to this responsibility. But at the same time, give us a chance. We’ll show you.”

You have been marked for death unfortunately. Getting your credit rating cut to junk status. Ouch. Only god knows the true amount of Credit Default Swaps that have been triggered in the shadows of the hearts of those Greedy Wall Street Bankers.

But lest we not forget, that those bankers could have never accomplish such a grave feet with out the blessing of those in our Federal Government who have entrust to be beholdened to our best interests.

I totally do not buy the whole NWO conspiracy theory.

But the lawsuit below against the Federal Government and these Wall Street banks seems to point a lot of light on this situation.

Take out all of the New World Order stuff and that is one ring dinger.

Allran v NY Fed Reserve

Categories: ECONOMY

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