Sell it to the Government … they will buy anything!

Putting Sub-Prime Mortgages into a Special Account….. seems to be
the method of getting rid of “good radiance’s”! When US Bankcorp decided in their
wisdom to separate the bad from the good….this has set off a bunch of domino’s in
various banking quarters around the world…to do exactly the same thing! Actually,
this isn’t all that bad a strategy….”if” in fact they can separate all of their
errant holdings into one nasty bag of garbage! The good unintended consequences are
that many bad faith banks that try the same thing will probably be found out in a
short time frame!

So, what is the benefit package for banks that try to separate the “bad” from the
“good” investment vehicles? First of all, the liquidity of banks will be become
more transparent. Anyone should be able to see quickly….what banks actually have
fully paid and vested “assets” and those that have either partial or leveraged
investment vehicles. Remember, SIV’s…like “Whislepoop” or whatever the name of
the Hedge Fund our current OC Treasurer has us into for the likes of $80 million
dollars? Structure Investment Vehicles; can be anything! Buyers beware! So,
when real banks separate these types of investments from say; US Treasury Bonds,
Municipal Bonds, Land, Real Estate or Oil Stocks….the Investors should know it
“If” the banks are fully forthcoming! If they aren’t..there is every chance that
a nasty Class Action Lawsuit might follow the Federal Indictments for Fraud. But
who knows? People with money have a track record for dodging the Feds with impunity
and guile! Except for Martha Stewart….Bernie Ebbers and Jeff Skillings; well,
who do you know? If you weren’t a TV Star or cost thousands of jobs and thousands
of investors their life savings….who else have you heard about? How many of those
guys are there….still out there…plying their wares?

OK, thanks Ben Bernanke, Fed Boss; for creating the environment for a One World
Currency! The fertile ground set by the Fed….opens up our country to supervision
and serious unabated regulation which can go anywhere! We might want to contact
those Senators and Congresspeople who serve on Banking Committees and ask them to
stay alert and on the job…while “Halley’s Comet” is saving “Lenders and Borrowers”
using the Sub-Prime Crisis as reason to “over-regulate” all of us! It’s not really
sexy work…but somebody has to do it! Locking in “Currency Exchange Rates” for
example would be a huge move toward a ONE World Currency!

So, what would a One World Currency do? It will “marginalize the dollar”! It
will reduce accountability for various countries within State Unions…such as
the European Union, Russia, Asia and India! But rather than “fear mongering”
it is probably just better to wait and see what happens by the end of this year
and right after the US elections! Usually, after a “euphoric election cycle”
which has been going on for almost two years….people are exhausted and not
paying much attention to what various governments are doing. 2009 will be an
important year to watch for the small things that may greatly affect our
freedoms and basic liquidity in this country. Already, efforts are afoot to implement
“The Attrition Strategy”. This strategy worked well on the WWII generation.
Don’t take away “their government goodies”….but take away everyone else that follows.
A couple of examples might be: Social Security – Starting at age 70!
Or letting people with “Classic or Antique Cars” keep them..then make everyone
else that gets one now or buys one; to have it smogged annually or biennially!
But who cares? Unless of course you are waiting to get Social Security or want
to enjoy an old car!

At any rate, it is good that the banks are doing something! George Soros….
recently said however that the real Hedge Fund, Derivative, SIV’s….paper or
fiat investments are about 45 Trillion dollars. Several years of US GNP and
several years of US Debt! So, whatever band-aids that are applied….it will
be very interesting to see whether the bleeding can truly be stopped. It will
be interesting to see how badly local municipalities, Pensions, Health Funds,
and Union Investments will survive…flourish or crash with great indignity!

In the meantime, watch the Real Estate Markets….they will tell us a lot…by
who buys and how much and when! Fannie Mae and Freddie Mac seem to be picking up
the slack and buying out those that have failed miserably. When the going gets
rough we can expect the Congress to come riding to the rescue for these vehicles
so that they can deflect the errors of their ways! So, Sell it to the Government
they will buy anything! Additionally, they can print money faster than most
people can spend it!