MONEY AND WORK

News from the Progressive Review, providing alternative news and comment for over four decades.

April 17, 2009

CRASH TALK

Larry Chin, Global Research - Wall Street is in the midst of a huge rally, primarily sparked by two recent occurrences.

The first was the "surprising" announcement that Citigroup, JP Morgan Chase and Bank of America -- major "zombie" banks laden with "toxic assets," on the verge of collapse, and the recipients of billions in government (US taxpayer) bailout money -- mysteriously posted profits this year. . . .

We now know, based on insider reports from securities traders, . . . AIG funneled "bailout" funds to AIG's counterparties, the very same big "toxic" banks that are now posting profits.

The second big event occurred when the Obama administration and Congress threw out the "Mark to Market" rules. Banks and financial institutions, which by law were previously obligated to price, or "mark," the toxic holdings to the current market price (honestly take huge losses), now have carte blanche to magically erase all of these losses, and price these toxic assets however they wish.

In other words, Wall Street has been given the green light to lie -- with the full blessing of the Obama administration and Congress. Toxic assets? Gone, just like that.

In yet another example of collusion and cover-up, federal regulators have told the nation's largest banks to "keep quiet" about their performance in the Obama administration's "stress tests.". . .

Obama himself will announce the results later, after he and his economic minions have had a chance to "manage" the data.

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