Phil's Christmas Stocking Stuffer

Posted: Dec 21, 2010 12:01 AM
Phil's Christmas Stocking Stuffer

The problem with the American economy, the stock market, and financial network CNBC, is that they have been built on lies and turned investors into victims!

This administration’s economic team , hosts and guest hosts on CNBC continue to lie about the purpose of TARP and its success. They think we sit on the “stupid bench” and try to take parking space in our heads by telling us that the sole purpose of TARP was to bail out the five too big to fail shadow banks Citi, Bank of America, Wells Fargo, J.P. Morgan, and Goldman Sachs. They lie when they say TARP has been successful. What, are you nuts?

Not only has TARP been a complete failure, it is the largest heist perpetrated against the American people in the history of our country! When former Treasury Secretary Hank “repulsive” Paulson pulled his bait and switch by promising that the money would be used to buy toxic mortgages to allow the banks to lend again, instead the money was given to the five biggest ” banksters “so that they could pay themselves Christmas bonuses and speculate in commodities and stocks. This was a complete departure from their business models.

The purpose of TARP was not to rescue large shadow banks. It was aimed at helping under water homeowners to strengthen the economy and to prevent a massive flood of foreclosures, which numbered one hundred thousand per month. TARP was not about funding the banks money at 0% interest so they could turn around and sell the money right back to Fed Chairman Ben Ber-nutty at a 5% spread; guaranteeing themselves a phony profit.

Since its inception, TARP unemployment has risen, foreclosures continue unabated, and home prices are still tanking. And since the government takeover of Fannie Mae and Freddie Mac, the losses have been picked up by the working class at a butt ugly $10 billion every quarter, Another great failure, homeowners “hope” program, which had no hope of working because the banks were making more money on foreclosures than they were in helping homeowners re-finance? As a result, the working class taxpayers lost $350 billion.

How can they call TARP a success, when through the Capital Purchase Plan, banks got $250 billion when the Federal Reserve bought their preferred shares? And rather than lending the money as promised, the Fed allowed the banksters to hoard it.

Even with the Frank/Dodd Financial Reform bill, TARP failed to curb the risk taking of the five too big to fail banks. They were the very ones who needed to be reformed the most, yet they got a pass from Dodd / Frank bill, with the implied guarantee of getting bailed out in the future.

TARP was a failure because it was approved with the promises that homeowners would be allowed to stay in their homes, and that the executive compensation for the bailed out banksters would not be paid; or at the very least restrained. Instead, the banksters were compensated more from using their Ber-nutty interest free money for high speed trading, where they didn’t lose on a single, solitary trade. How can you not make one mistake out of 1200 trades? It’s easy when the government is your partner, Mr. Geithner, and the SEC both members of the “plunger team” (the president’s working council on markets) allowed them to link their computers to the New York Stock Exchange’s (NYSE) computers, thereby rigging the trades.

So how does high-frequency trading work ? Goldman Sachs and J.P. Morgan would over-ride 70% of the normal volume/supply on the NYSE (also called “price discovery”) by injecting high frequency, fake trades from their computers. In doing so, they were able to take the market making capacity of the exchange out of the hands of the people who are supposed to establish prices, and put it into the banksters own hands. They thereby controlled the prices, moving them up or down to fit their agenda. What, are you nuts?

Because of our rigged market capital system, the person who was once coined as a long-term “investor” is now nothing more than a long-term “victim.” Become an “activist” trader instead of a victim by learning how to use the charts. This allows you to influence your outcomes rather than hoping for good results by passively handing your money to a financial terrorist!

Join me on my nationwide, self-syndicated “Phil’s Gang” radio show each weekday from 3:00 to 4:00 PM est., where I’ll see you on the charts!

Merriest Christmas to you all!