Is this what we really want?

First the Bush administration, and now the Obama administration, are allowing their buddies on Wall Street to keep the insane amounts of money they have made over the last eight years, and forcing you, the average citizen, to pay for their yachts, mansions, first row seats, etc. Even the Politburo would have denied this.

To add insult to injury, our leaders now say the contractual obligations of the bailout structure demand these companies, that MUST have taxpayer money to keep from going bankrupt, give bonuses for losing money. Bonuses, by the way, to the very individuals that caused the ramp up in over-leveraging by selling fraudulent bonds, that are now worthless. Several hundreds of trillions of dollars of worthless.

For all those blaming Obama, Geithner may have been part of the original negotiation with AIG. But he worked for Bernanke. Henry Paulson and the Bush White House were the ones that drew the original contract. Goldman Sachs has been a major beneficiary of the money given AIG.

Do you honestly believe that is a coincidence?

Under which President did the bailout party begin?

Ok, on to the next worrisome tidbit. It is fraud if an insurance company writes a $100,000 policy on a house, yet only has $5000 in assets. Should something happen to that house, and they have to pay $100,000, it is clear they do not have the assets to cover it.

It is also fraud to represent a security as safe, when it is clearly not. If an investor buys a loan to make money on the interest, and is told it is from someone with the best credit score who had enough income to pay the maximum payment, he expects that to be true. If it turns out that someone only made enough money to pay half the maximum payment, and their credit score was 100 points less than what is considered good, that is fraud.

Both of these things are at the heart of our current crisis. Loans that were represented as having sound underwriting have been proven anything but. Credit Default Swaps were, and still are, being sold by companies that do not have the capital to pay off when the credit derivative they have been issued to insure, defaults.

The latter is exactly why AIG is now owned by the government.

Both of these constitute fraud. Yet, we had President Obama tell Jay Leno that there was nothing illegal about the build up to our current crisis.

I don't know about you, but for me, that is probably the most unsettling statement I have heard from a President in years. And we just got past a President that made a lot of unsettling statements.

It means there may be no investigation into all the blatant fraud coming from Wall Street over the last eight years. Goldman Sachs, among others, were selling CDO's and CMO's, with fraudulent underwriting standards, then immediately buying CDS from AIG, betting those CDO's and CMO's would fail.

AIG still has over $2 Trillion in CDS floating around out there. The $200 Billion so far to AIG is only a drop in the bucket. Remember when Bernanke and Paulson told us the taxpayer might make money on AIG? If these guys are the smartest financial guys we have.........(reference above picture).

Watch what the Chinese, and maybe many other countries, do next. They expect some very big people on Wall Street, and I am not referring to Bernie Madoff, to go to jail over all of this. If we do not send them, the rest of the world will let us choke on our own vomit. Guaranteed.

You see, it is not only US corporations that have been affected by the credit meltdown. We have exported these "toxic" assets to every corner of the world. Large foreign banks have them. The Central Banks of major trading partners have them. Sovereign Wealth Funds have them. Pension accounts and money market accounts around the world have them.

They all expect the US to do what they consider the right thing, and jail those responsible for selling them something that was not what they were told. And if we don't do that, they expect the US to make them whole on all losses.

Well, when the losses amount to hundreds of trillions of dollars, we just don't have the ability to raise that kind of money. You have heard a very few congress people say it is far worse than you know, this is what they are referring to.

Many are upset that the previous administration is not being pursued for crimes against the constitution. Because the economic crisis is an immediate threat to the foundation of civilization, it must be dealt with first. Giving a pass to financial crimes, when the losses are greater than available monies, is a huge mistake. The US must stand up and tell the world that fraud will not be rewarded.

Bonuses to AIG tells the world that fraud is rewarded. At least in the United States of Goldman Sachs.