YOU Load Sixteen Tons and What do YOU Get?

It was easy to come away from the senate hearing today with the impression that there is, "....no guarantee that the taxpayers won't get caught holding bad debt that can't be recovered."

Actually there was a guarantee stated during the hearing today. It was easy to miss because the senators and the technocrats did not want to talk about it openly so they used code.

The guarantee is that YOU will pay the "hold to maturity price" for these bonds, notes, etc. That means their full remaining value.

If the instrument is a 30 year mortgage the "hold to maturity price might be 98% of the total principal and interest involved in the mortgage. That means if the loan was $100,000 with a fixed interest rate of 10% for 30 years the total value of the mortgage is $322,599.60.

YOU will pay $316,147.60 for this item. IN THEORY a 2% profit would mean that you would then make $6,452.00.

I say ‘in theory’ because YOU must remember that these are "toxic" loans - meaning they are not "profitable." Most have probably already been "monetized" - sold to and redeemed by an investor - one or more times. Most are probably already in default.

That is why they are "toxic" - the fascio-corporatist financiers and bankers of the wall street cabal cannot use them to borrow money from other investors. They have no value.

Anyone who sold them to an investor would be sent to prison for fraud because when the investor comes to redeem them there will certainly be no money with which they can be paid.

The shareholders of the institutions which monetized them are suppose to pay the investors but they DO NOT want to pay the investors.

They want to sell them to YOU at full price. YOU will SAVE their houses, their cars, their money, their retirements amd their rear ends.

Who are they? Some of them are the same people who were talking to the senate committee today demanding that YOU bail them out. Some of them are the politicians the technocrats were meeting with and who ARE going to bailout the collective "them."

What will you get for this act of stupidity - I mean kindness?

Like Tennessee Ernie Ford use to sing, "Another day older and deeper in debt."

You are about to learn that there was a reason for all those old union songs. They knew what it was to be exploited - and YOU will also.

So go ahead. YOU bail them out.