Voice of the White August 23, 2007

“By now, most Americans have learned of the very serious economic problems caused by the utter collapse of the sub-prime home mortgage business. What is not discussed are certain underlying causes which I will rectify for you. The so-called ‘dotcom’ stock collapse was a rigged venture that almost wiped out an entire legitimate industry some years back. How it worked was this way” A number of crooked stock brokers promoted certain high tech stock. They knew there was really nothing behind their choices. Once the stock was set up and destined for the board, they called a number of their wealthy friends and said, in essence, ‘I want you to buy 30,000 shares of such-and-such stock at ten and I will sell you out at twenty.’ The client, who had been this before, agreed. The result was a surge in sales and we had a ‘rocket stock.’ Eventually, when the worthless stock shot up to $80.00 a share, gravity took over and down it went, overnight. So did other deals like and, unfortunately, a lot of legitimate stock. Now, we have the same game but with different players. This time, a group of thoroughly crooked small mortgage dealers conspired with each other to rip off the major banks. They gave no-deposit mortgages to home buyers whom they knew had no credit at all. They sold them flexible rate mortgages and forgot to tell the new home owners that in a few months, their $300 a month payments would suddenly soar to $3,000. Then they sold these deliberately faked mortgages to banks and lending institutions. These, in turn, believing that when they put the rates up within the stated limits, their incomes would soar. These mortages were then put into packages by the unsuspecting banks and sold to investors. Naturally, when the banks raised the rates (as they had an absolutely legal right to do,) the poor homeowner could not make the payments, defaulted and the bank had to take over the homes that had been abandoned. People high up in Washington became aware of this (but the press was asked initially to lay off the subject) Cheney suggested to the shocked banks that they quickly sell of the “bad” mortgages to the Chinese. For some reason, Cneney hates them and is doing his very best to ruin their economy. He was the moving force behind the plan to sell Blackstone stock to the Chinese just before Blackstone went public. Naturally, when the news of the huge Chinese purchase hit the cooperative press, the stock prices went up just long enough for Cheney and his friends to make a short-term killing before Blackstone tanked. The Chinese are, deliberately, stuck with billions of dollars of stock in a fly-by-night company who is in the process of total collapse. Also, there have been runs on a bank, Nationwide, which is allied with the mortgage people who are in the process of total burn out. The public should note that the FDIC program protects all investors in any bank up to $100,000 and bank runs are not necessary or helpful. Now, you have some background on this. Don’t blame the banks, kids. They were conned and we will all pay for the game. And by now, the sleazy mortgage brokers are sunning on the beach at Tel Aviv while thinking of all their money stashed in Israeli banks.”
http://www.tbrnews.org/Archives/a2742.htm

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A Complete Copy of the Voice of the White House from TBR News April 18, 2004- December 29, 2005