The Great Highway Robbery Continues: How The FDIC Is Legally Transferring Billions In Taxpayer Money To Hedge Funds

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Wed, 02/10/2010 - 15:31 | 225277 WaterWings
WaterWings's picture

Hopefully the homeowners didn't spend any of their HELOC on imported stuff! The video didn't mention that the IRS is going to want their cut of your newly found "income" after debt forgiveness and cancellation. I'm not in the industry, but I think this is one hell of a Charlie Foxtrot for the crumbling nation called America.,,id=179073,00.html

I predict 300+ comments on this one. If wrong I still have my GOLD BITCHES!!!

Wed, 02/10/2010 - 16:04 | 225392 ZerOhead
ZerOhead's picture

Well somebody has to pay... and the little guy never bought politicial and regulatory insurance like the TBTF's and friends. Hey that could be a new financial product... Regulatory Default Swaps!

Wed, 02/10/2010 - 16:13 | 225408 Careless Whisper
Careless Whisper's picture

those "savvy" bankers are at it again.

Thu, 02/25/2010 - 22:25 | 246156 Anonymous
Anonymous's picture

bs the bankers are not doing anything this is just the government hard at work propping up the malinvestments they created making them worse and sending in their "regulators" in to further mess up thigns with their regulators fact is the left wing terrorist network set off a bomb just like in 1919 in wall street bolsheivick style this time inside the banks themselves after creating them through the gov forcing them to make bad loans "roiding" up "affirmative action" banking style and forcing banks small medium and large to give to people who would not pay them back to meet their illegal alien black and democrap occupied "urban" hellholes "investments" shakedowns its was Jesse Jackass Jackson and mad large insane scale and we are scarewed because of it scaaaa..rewed because of it. OH yea nd the Fed funded it with inflation throught the "treasury" and the fha/freddie/fannie. Nice scheme their Clintoon. The alinksyites who gave Arkansas Whitewater gaves us the entire "90's".

Wed, 02/10/2010 - 18:04 | 225645 velobabe
velobabe's picture

it's a start folks. credit card revolt. print out flyers on this site and paste on banks windows and ATMs. the site has some bucks behind them cause they have national tv ads on, that are pretty hilarous.

Wed, 02/10/2010 - 19:23 | 225780 Zippyin Annapolis
Zippyin Annapolis's picture

The IRS went after "debt forgiveness" during the S and L bailout and the "investors" who were promised debt forgiveness and forebearance took the government to court--all the way to the Supreme Court--and won--sooo I think they have their butts covered on this one.

Wed, 02/10/2010 - 19:28 | 225790 albion402
albion402's picture

The fellas at really have nailed several of the major screw-ups in the mortgage business.   Normally, a bit of humorous and biting sarcasm...not the serious stuff found here.... /sarc     :)

Wed, 02/10/2010 - 15:10 | 225296 Fidel Sarcastro
Fidel Sarcastro's picture

FREE money to the banksters?  What else is new?

Thu, 02/25/2010 - 22:27 | 246159 Anonymous
Anonymous's picture

There is no such thing as free money and they are not "banksters" they low men on totem pole basically IC of GOVERNMENT policy and Fed res/New Deal controls designed to make everything worse and blame it on "capitalism" Fascism were the state fucks over business controls it and has it eat out of its hand bark when it is told to park and then blames it for what it trained and wants it to do.

Wed, 02/10/2010 - 15:16 | 225305 Daedal
Daedal's picture

Meanwhile, this clown ( thinks that Blankfein's bonus is a result of 'free market'.

Wed, 02/10/2010 - 15:49 | 225360 Anonymous
Anonymous's picture

Of course there's that sticky detail that athletes don't get their millions by fleecing trillions from taxpayers! How can so much stupidity fit in one head? I think Seagate or WesternDigital should study such compression techniques.

Wed, 02/10/2010 - 18:47 | 225721 JuicyTheAnimal
JuicyTheAnimal's picture

Panty-waste-ass-clown to be more specific. 

Wed, 02/10/2010 - 15:16 | 225307 gold_tracker
gold_tracker's picture

That's bloody maddening! 

Wed, 02/10/2010 - 15:16 | 225310 HelluvaEngineer
HelluvaEngineer's picture

Saw this one a couple of days ago.  I didn't forward it on at the time but think I should.  Most regular people (including me) can understand that this is blatant robbery.

Wed, 02/10/2010 - 15:31 | 225332 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

well ordinary sir, Steve Keen is asking engineers to become economists...please consider ;)

Wed, 02/10/2010 - 15:35 | 225337 HelluvaEngineer
HelluvaEngineer's picture

It would be telling if engineers got involved in economics and it became less complicated.

Wed, 02/10/2010 - 16:18 | 225425 Anonymous
Anonymous's picture

weeelll, the financial engineers
did become involved in finance
and it became not only more
complicated but much less
stable...i don't have any more
optimism for economics....

if you want to understand economics
study murray rothbard...

Wed, 02/10/2010 - 18:23 | 225684 Anonymous
Anonymous's picture

The relationship between engineers and financial engineers is sort of like the relationship between cowboys and unicorn cowboys.

Thu, 02/11/2010 - 12:11 | 226732 Anonymous
Anonymous's picture

Actually, the investment banks were hiring engineers, mathematicians, and physicists the past 10 years.

Fri, 02/12/2010 - 10:16 | 228303 Anonymous
Anonymous's picture

I seriously doubt that. Mathematicans yes, but the rest, no.

Fri, 02/12/2010 - 15:18 | 228873 WaterWings
WaterWings's picture

Mostly because a politician would request that they suspend their knowledge of physics - which is why these engineers should be given the authority to shoot any elected official that suggests the suspension of physics.

Wed, 02/10/2010 - 15:16 | 225311 chindit13
chindit13's picture

In America everyone is equal under the law.  Unfortunately, some are above the law.

Wed, 02/10/2010 - 16:34 | 225473 Kitler
Kitler's picture

So we pass a new law making everyone 'above the law'.

We would save billions and create millions of new (formerly criminal) jobs!

Wed, 02/10/2010 - 15:18 | 225315 ghostfaceinvestah
ghostfaceinvestah's picture

Don't think this is the only underhanded deal the FDIC has done, check out the deal that Colony Capital struck with them.  This was a sweet deal (not for the taxpayer).

Wed, 02/10/2010 - 15:20 | 225316 Cognitive Dissonance
Cognitive Dissonance's picture

This Ponzi is limited only by the creativity and brazen criminality (legal or otherwise) of the perpetrators, which includes any past or future beneficiaries. This is an important point because when the looting begins, many wannabes on the side lines are sure to be recruited (or self recruit) in an effort to pick up some loose change along the way.

Is it any wonder that psychopaths are running the joint? After all, that personality type is perfect for this type of "work" so who would possibly join the band of thieves if they still retained any moral character or empathy for the unwashed masses, also know as the tax paying sheep? 

Wed, 02/10/2010 - 16:56 | 225518 Kitler
Kitler's picture

'When the looting begins' ?  Ha ha ha!!!

Remember... psychopaths have almost always run everything. A conscience would just get in the way of achieving the former goal.

Come join the Wolfpack and dine on mutton.

Wed, 02/10/2010 - 17:26 | 225572 ghostfaceinvestah
ghostfaceinvestah's picture

I think sociopaths would be a more accurate description, but point well taken.

Wed, 02/10/2010 - 20:56 | 225965 Hephasteus
Hephasteus's picture

Sociopathy is just psychopathy when it joins a large group or gets involved in politcs or banking or corporate culture or religion, etc etc. Once a psyschopath is able to get a couple people to fulfill it's needs they like to try to get more and more people involved cause it's a challenge.

Thu, 02/11/2010 - 06:59 | 226420 Cognitive Dissonance
Cognitive Dissonance's picture

sociopath [(soh-see-uh-path, soh-shee-uh-path)]

Someone whose social behavior is extremely abnormal. Sociopaths are interested only in their personal needs and desires, without concern for the effects of their behavior on others. (Compare psychopath.)


psychopath [(seye-kuh-path)]
A mentally unbalanced person who is inclined toward antisocial and criminal behavior. (Compare sociopath.)

Wed, 02/10/2010 - 15:21 | 225317 Gubbmint Cheese
Gubbmint Cheese's picture

It's time - where's Howard?


"I'm mad as hell.. and I'm not going to take it anymore!!"

It was on TV last night - oh the irony.



Wed, 02/10/2010 - 15:22 | 225318 Anonymous
Anonymous's picture

May the sheeple learn from this. Do not buy a house. Rent.

Wed, 02/10/2010 - 15:23 | 225319 Postal
Postal's picture

"...intellectually subprime..." Ha! My favorite phrase on ZH.

Wed, 02/10/2010 - 15:56 | 225370 Anonymous
Anonymous's picture

Yes, high praise indeed!

Are you sure she will be able to live upto this standard?

I'm sure she's being compensated handsomely to allow the plunder to continue, and why not, after all it ain't her money.

Although I think intellectually subprime is a bit over the top, I prefer, "intellectually vacuous"

From the dictionary:

vacuous??/?vækyu?s/ [vak-yoo-uhs]
1. without contents; empty: the vacuous SEC.
2. lacking in ideas or intelligence: a vacuous mind, M. Shapiro to a tee.
3. expressing or characterized by a lack of ideas or intelligence; inane; stupid: a vacuous career, M. Shapiro again.
4. purposeless; idle: a vacuous regulatory agency.

Wed, 02/10/2010 - 16:20 | 225429 Anonymous
Anonymous's picture

subprimeness applies not only to her
intellect but to her morals as
well....she is the uber money
whore....hope she dies soon...

Wed, 02/10/2010 - 15:24 | 225320 Eally Ucked
Eally Ucked's picture

We are witnessing last stage of decay, everybody knows the system is dead so they trying to get as much as possible before everything goes down in smoke. Do you remember "Zorba the Greek" and the scene when everybody just waits to loot after official funeral celebrations are finished?

Wed, 02/10/2010 - 16:00 | 225376 debt.crisis (not verified)
debt.crisis's picture

Money doesn’t grow on trees for most of America. We sit down at our kitchen tables and write out checks to the phone-company, electric company, credit card-company, mortgage-company, and auto finance company every month.  We clip coupons and go to the grocery store every week to put food in the mouths of our children. This is what our parents did before us.
good articles:

Wed, 02/10/2010 - 16:23 | 225442 Anonymous
Anonymous's picture

but you are just the little people
for whom the wealthy hold contempt

watch the arron russo interviews
and his comments on his ex-good bud
nick rockefeller...

let them eat cake is too good the
little people...

Thu, 02/11/2010 - 03:11 | 226357 Anonymous
Anonymous's picture

Oh no, it's that "i am ned" crapola again. I thought we had seen the last of you. Please be gone with your BS posts, quite vacuous in themselves, just trying to get people to go to your site!

Wed, 02/10/2010 - 15:25 | 225323 Anonymous
Anonymous's picture

I suggest Zero Hedge become a virtual SEC. Report findings (like the above) here, then we'll use the virtual jury (comments section) to set a $ fine, consequences, and/or punishment for the accused (assuming they are found guilty).

While there may be no enforcement of this, eventually the mass media will look to Zero Hedge instead of the SEC as the justice seekers of our financial markets.

Wed, 02/10/2010 - 15:25 | 225324 buzzsaw99
buzzsaw99's picture

Carlito:  What, you think you like me? You ain't like me motherfucker, you a punk. I've been with made people, connected people. Who've you been with? Chain snatching, jive-ass, maricon motherfuckers. Why don't you get out of here and go snatch a purse.

Wed, 02/10/2010 - 15:29 | 225327 Anonymous
Anonymous's picture

Yeah... I'll agree that Sheila Bair is an idiot. She's closing perfectly good banks, transfering nice assets at prices that are WAY too marked down. And there is nice upside for those of us playing in financials risk.

(Act, it was an easy trade to front-run on the way down too!)

The YO-YO of M-T-M is just a windfall for saavy speculators.


Wed, 02/10/2010 - 15:35 | 225329 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

One of many ways banksters steal money.  Housing de jour.

Housing prices have two more legs down, btw.  Great depression numbers in 2 years.

Wed, 02/10/2010 - 15:30 | 225330 Hephasteus
Hephasteus's picture

Does anyone know of a weapon that kills people and is not humane and assures you of the person being in tremendous pain the whole time they are dying? That's going to be a HUGE market.

Wed, 02/10/2010 - 15:39 | 225345 H.W. Plainview
H.W. Plainview's picture

It's called a crucifix.


"I am an oil man"

Wed, 02/10/2010 - 15:48 | 225358 WaterWings
WaterWings's picture

I was about to say that we'll probably see medieval torture come back in a big way.

Although a 9mm to the gut would work, too.

Wed, 02/10/2010 - 16:24 | 225445 Anonymous
Anonymous's picture

subprime schapiro deserves a 50
caliber machine gun to the gut...

Thu, 02/11/2010 - 03:26 | 226365 Anonymous
Anonymous's picture

50 BMG is far too humane.
Call me a traditionalist, but I prefer tar and feathers.

Wed, 02/10/2010 - 15:49 | 225359 HelluvaEngineer
HelluvaEngineer's picture

tire + gasoline

Wed, 02/10/2010 - 16:01 | 225383 debt.crisis (not verified)
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