Executive Summary The CDO is unregulated insurance for mortgage backed securities. Introduction CDOs are a type of unregulated insurance on mortgage backed securities. They were deliberately not called “insurance” so that they could bypass regulation. AIG kept no reserves to cover losses and hence when the mortgage-backed securities that were not what they were rated…
Executive Summary Private banks lend out what is the government’s money-creation function and receive interest for something they cannot create on their own. Introduction Banks, like the Federal Reserve, are granted their powers by the US Government (as are other banks in other countries granted their powers by those governments). There is no reason for…
Executive Summary Repos are a way of obtaining credit on the basis of a security as collateral. Introduction Repo-ing is explained in the following quotation. “Rehypothecation means that the repo lender can reuse the securities it gets as collateral from a repo borrower. For example, if a hedge fund borrowed money from Lehman Brothers and…
Executive Summary Foreclosure fraud was legitimized when Steve Munichen was made Treasury Secretary. Introduction During the 2008 subprime mortgage crisis, private banks took advantage of foreclosures and many banks produced fraudulent documentation that would allow them to foreclosure on houses that were not delinquent. Private banks have created foreclosure mills that specialize in foreclosing and…
Executive Summary Fanny Mae and Freddie Mac were created to purchase home loans to “increase liquidity.” These institutions would be completely unnecessary under a government-controlled banking system. Introduction The Federal National Mortgage Association or “Fanny Mae” and Federal Home Loan Mortgage Corporation or “Freddie Mac” are two now nationalized loan buying entities that purchase loans…
Executive Summary The debt as a virus theory is centered on the fact that as banks create money, banks only create the principle, and there is not enough money created to pay back the interest on the principle. Introduction This is explained in the following quotation. “Money is created when banks lend it into existence….
Executive Summary Banks have virtually no cost of capital, and the principle is entirely conjured from nothing. Thinks makes recording bank profits an exercise worth analyzing. Introduction How the system works is explained in the following quotation. The principle or loan amount as created from nothing, a power granted to the bank by the government….
Executive Summary Quantitative easing is a deliberately obscure term that means taking bad assets from banks and placing them on the government’s balance sheet. Introduction Private central banks create a fiction about QE, which is then repeated dutifully by mainstream economists. This explanation is that it is a stimulus. But, while it is a stimulus,…
Executive Summary PPPs are how private companies rob the public domain. Introduction PPP is a technique to steal benefits from the public domain by proposing a “partnership.” The private banking interests promote PPP and privatization. They are a major focus of the corrupt representatives of private banking interests like the IMF, the World Bank, the…
Executive Summary Unit banking is a single branch bank. Introduction Unit banking is where a bank only has one branch. The concept of unit banking is to restrict banking power, and a unit bank may be viewed as the opposite of branch banking. The downside of unit banking is that a bank that is concentrated…