Did the Fed & banks conspire to get real wealth bailouts from US workers to

[ObamaNation1]

replace their phony paper debts? The Fed and banks deliberately created massive amounts of debt that they knew the American taxpayer would cover, so they could replace the debt they made based on nothing but paper with bailouts that is based on real currency and wealth from labor paid to the banks by taxes.

 

[peachboy]

Seeing as you answered your own question, please can I have 10 points?

 

[KellyB]

Brilliant!

Glad to see there are incredibly smart people here at Yahoo once-in-awhile!!!

I have thought the same about this calamity for some time now!

As much as they have and they still want more!!!

Seriously, when is enough ...enough?

 

[patriotwww]

It went something like that. They wrote a bunch of bad paper knowing that failure would not be allowed to happen and the taxpayer is footing the bill for their greed and deviance.

 

[railroaddave]

bush still refuses to publish the M3 numbers , so "real" currency is of questionable value , to anyone . stockpile gold or beryllium .

 

[StevenF]

The MAJOR flaw in your theory is that the bailouts are NOT real wealth. They are just more debt.

 

[abushfamilymember]

No. WaMu and others didnt think they would go broke by giving loans to people with no bank accounts, no social security numbers, no income verification, etc..

Most banks thought home prices would continue to rise and the banks would make a profit reselling properties if homebuyers defaulted on their loans.

The housing bubble that Clinton created only worked when home values were increasing. When home prices started decreasing that created a chain reaction that has resulted in what you see today.

 

[CHARITYG]

We no longer have "real" currency . . . if I give you a dollar . . . I am not giving you 100 pennies . . . and am giving you a "piece of paper" which guaranteed that the government will give you 100 pennies . . . U.S. currency does not act as a currency but rather an IOU

 

[MickeyMouseSpears]

The debt is not just on paper, the debt is in illiquid assets -- foreclosed homes, and the bailout terms stipulate that the banks have to pay back the federal loans before they can post a profit.

 

[joeschlobotnic]

yes