Friday, September 25, 2009

Martin Armstrong - The Collapse of the Rule of Law--A Prelude to Disaster!

Martin Armstrong - The DNA of the Global Economy...

The DNA of the Global Economy 91709

Thursday, September 24, 2009

Davos on the Edge / Market Thread 9.25.2009

  • New Push for Global Currency
  • Gloom Boom & Doom (Video)
  • Peter Schiff, Dollar G20 (Video, H/T iDoctor)
  • A Coming Flood of Bank Owned Homes
  • Chart: Damaged REO, Mone-In Ready REO, Shorts & Non-Distressed
  • FOMC Between the Lines
  • Not Exactly Doom-and-Gloomers
  • Why the U.S. economy CAN'T “recover”
  • ICN (Video, H/T iDoctor)

Economy

New Push for Global Currency

The sun is setting on the US dollar as the ultra-loose monetary policy of the US Federal Reserve forces China and the vibrant economies of the emerging world to forge a new global currency order, according to a new report by HSBC.

Gloom Boom & Doom (Video)

Peter Schiff, Dollar G20 (Video, H/T iDoctor)

[video:http://www.youtube.com/watch?v=s2pp90ZMMwU]

A Coming Flood of Bank Owned Homes

Thus, it creates a “growing ’shadow’ inventory of pent-up supply that will eventually hit the market.”

Here’s the excerpt from the WSJ:

“The size of this shadow inventory is a source of concern and debate among real-estate agents and analysts who worry that when the supply is unleashed, it could interrupt the budding housing recovery and ignite a new wave of stress in the housing market . . . Analysts who track the shadow market have focused primarily on the gap between the number of seriously delinquent loans and the number of foreclosed homes for sale by mortgage companies. A loan is considered seriously delinquent, which typically means it is headed to foreclosure, if it is 90 days or more past due.

As of July, mortgage companies hadn’t begun the foreclosure process on 1.2 million loans that were at least 90 days past due, according to estimates prepared for The Wall Street Journal by LPS Applied Analytics, which collects and analyzes mortgage data. An additional 1.5 million seriously delinquent loans were somewhere in the foreclosure process, though the lender hadn’t yet acquired the property. The figures don’t include home-equity loans and other second mortgages.

Moreover, there were 217,000 loans in July where the borrower hadn’t made a payment in at least a year but the lender hadn’t begun the foreclosure process. In other words, 17% of home mortgages that are at least 12 months overdue aren’t in foreclosure, up from 8% a year earlier.”

This overhang is likely going to be problematic for years to come . . .

Chart: Damaged REO, Mone-In Ready REO, Shorts & Non-Distressed

FOMC Between the Lines

Although economic activity is likely to remain weak for a time, the Committee anticipates that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will support a strengthening of economic growth and a gradual return to higher levels of resource utilization in a context of price stability.

We believe in the Easter Bunny and Santa Claus too, as shown by the clear contradiction with our previous paragraph.

Not Exactly Doom-and-Gloomers

According to the U.S. Small Business Administration, many successful entrepreneurs have similar traits and characteristics, including:

  • Persistence
  • Desire for immediate feedback
  • Inquisitiveness
  • Strong drive to achieve
  • High energy level
  • Goal-oriented behavior
  • Independent
  • Demanding
  • Self-confident
  • Calculated risk taker
  • Creative
  • Innovative
  • Vision
  • Commitment
  • Problem solving skills
  • Tolerance for ambiguity
  • Strong integrity
  • Highly reliable
  • Personal initiative
  • Ability to consolidate resources
  • Strong management and organizational skills
  • Competitive
  • Change agent
  • Tolerance for failure
  • Desire to work hard

In sum, they are not the kind of people who tend towards pessimism or who easily lose heart. With that in mind, the perspectives detailed by the nation's largest non-profit foundation devoted to entrepreneurship in the following report, "Entrepreneurs' Gloom Contradicts Wall Street Optimism," should give (further) pause to those who believe a "V"-shaped recovery is at hand:

Why the U.S. economy CAN'T “recover”

When asked to justify their reluctance to apply the label of “recession” to this economic collapse (which is, in reality, a Greater Depression), the reply was the same: formally declaring a “recession” was something which was done in hindsight – after enough data had accumulated to justify that backward-looking prognosis.

What a surprising coincidence that these same U.S. market-pumpers see absolutely no reason to exercise any caution at all when declaring a “recovery” has begun!

One of the chief propaganda tools of these shills is the index of economic “leading indicators”. Even if I were to concede these “indicators” were a persuasive tool for predicting future economic activity (which I don't), this particular statistic only has relevance if the economy is operating within something close to normal parameters – which it isn't.

ICN (Video, H/T iDoctor)

[video:http://www.youtube.com/watch?v=pfqVuLST1-8]



Wednesday, September 23, 2009

Davos on the Edge / Market Thread 9.24.2009

  • CORRUPTION: Reverse-Insurance?! (FDIC)
  • Get ready for this: officials may soon ask banks to bail out the government
  • Derivatives Could Cause Another Meltdown: Mobius (Video on page)
  • Income for the Masses Not Keeping Up... For 40 Years (Chart on page)
  • Mark Faber Part 1 Video (H/T iDoctor)
  • Mark Faber Part 2 Video (H/T iDoctor)
  • Mark Faber Part 3 Video (H/T iDoctor)
  • Shocker: Most Traffic Growth To UK News Sites Is Coming From U.S.

Economy

CORRUPTION: Reverse-Insurance?! (FDIC)

Let me pose a question to you.

Let's say you own a $200,000 house free and clear.

Let's further say that you would like fire insurance. Just in case you are a klutz in the kitchen, for example.

So you sit down and write yourself a fire insurance policy. You promise to pay yourself $200,000 to rebuild your house if it burns to the ground.

You then put your "insurance policy" in the safe and pat yourself on the back - you're insured!

Now, you want to re-do your kitchen and add a pool, so you go to the bank to get a mortgage to finance those improvements.

The mortgage company would accept your self-written policy as proof of insurance, right?

Oh wait - they'd call that fraud?

Well gee, what's this then?

Get ready for this: officials may soon ask banks to bail out the government


[Video on page]

Tired of the government bailing out banks? Get ready for this: officials may soon ask banks to bail out the government.

Senior regulators say they are seriously considering a plan to have the nation’s healthy banks lend billions of dollars to rescue the insurance fund that protects bank depositors. That would enable the fund, which is rapidly running out of money because of a wave of bank failures, to continue to rescue the sickest banks.

The plan, strongly supported by bankers and their lobbyists, would be a major reversal of fortune.

A hallmark of the financial crisis has been the decision by successive administrations over the last year to lend hundreds of billions of taxpayer dollars to large and small banks.

“It’s a nice irony,” said Karen Shaw Petrou, managing partner of Federal Financial Analytics, a consulting company. “Like so much of this crisis, this is an issue that involves the least worst options.”

Bankers and their lobbyists like the idea because it is more attractive than the alternatives: yet another across-the-board emergency assessment on them, or tapping an existing $100 billion credit line to the Treasury.

Derivatives Could Cause Another Meltdown: Mobius (Video on page)

Income for the Masses Not Keeping Up... For 40 Years (Chart on page)

Mark Faber Part 2 Video (H/T iDoctor)

[video:http://www.youtube.com/watch?v=UfuiNjvH9_c]

Mark Faber Part 2 Video (H/T iDoctor)

[video:http://www.youtube.com/watch?v=gdBIRD87-Ao]

Mark Faber Part 3 Video (H/T iDoctor)

[video:http://www.youtube.com/watch?v=kA5dfcMNtCo]

Mark Faber Stocks 2 Video (H/T iDoctor)


Shocker: Most Traffic Growth To UK News Sites Is Coming From U.S.

Brit news sites from across the pond is growing nearly seven times as fast as that domestically. (To view a breakdown chart, click here.)Foreign Visitors To UK News Sites



Tuesday, September 22, 2009

Davos on the Edge / Market Thread 9.23.2009

  • HSBC bids farewell to dollar supremacy (H/T SaxPlayer00o1)
  • Fed to Geithner: Pi$$ Off
  • The origin of the U.S. dollar as legal tender and its link to Depression
  • Debt Clock (Global)
  • Episode 21 - The Web of Debt, 2 Beers with Steve
  • http://biiwii.blogspot.com/2009/09/dow.htm
  • Dr. Rand Paul Part 1 (Video, H/T iDoctor)
  • Dr. Rand Paul Part 2 (Video, H/T iDoctor)
  • Dr. Rand Paul Part 3 (Video, H/T iDoctor)
  • Major Crisis Still Ahead, Past One Was Minor (Video H/T iDoctor)
  • Max Keiser Puts and Calls (Video)

Economy

HSBC bids farewell to dollar supremacy (H/T SaxPlayer00o1)

The sun is setting on the US dollar as the ultra-loose monetary policy of the US Federal Reserve forces China and the vibrant economies of the emerging world to forge a new global currency order, according to a new report by HSBC.

Fed to Geithner: Pi$$ Off

“Federal Reserve Board has rejected a request by U.S. Treasury Secretary Timothy Geithner for a public review of the central bank’s structure and governance, three people familiar with the matter said.

The Obama administration proposed on June 17 a financial- regulatory overhaul including a “comprehensive review” of the Fed’s “ability to accomplish its existing and proposed functions” and the role of its regional banks. The Fed was to lead the study and enlist the Treasury and “a wide range of external experts.”

The Fed needs to be VERY concerned with maintaining their independence.

Regardless of your views about Ron Paul (his new book is called End the Fed), its the rest of the crowd of that scares me. Imagine what the dolts who run congress would do if they had access to the Fed’s authority.

The origin of the U.S. dollar as legal tender and its link to Depression

The question was: how can a government without the levers of the money printing press use money as an escape-hatch in a depressionary environment? So to answer that question, I wanted to look at the origins of legal tender laws in the U.S.. When the United States was established, the U.S. Constitution outlined the basic framework through which government – both state and federal – could act on behalf of America’s citizens. Nowhere in the U.S. Constitution was legal tender mentioned, and this is a bone of contention still amongst those who see the Federal Reserve as an illegitimate institution. Below, I want to outline a brief (and hopefully non-ideological) history of how the greenback became legal tender in the United States. I have some related comments at the end on Depressions and their lasting consequences on politics and history.

The Constitution

The Constitution mentions the word money in three sections, 8, 9 and 10. Below are the individual citations as they pertain to Congress acting on behalf of the federal government:

Section. 8. The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

To borrow Money on the credit of the United States;

To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

To raise and support Armies, but no Appropriation of Money to that Use shall be for a longer Term than two Years;

Section 9 is no longer applicable, but here it is.

Section. 9. The Migration or Importation of such Persons as any of the States now existing shall think proper to admit, shall not be prohibited by the Congress prior to the Year one thousand eight hundred and eight, but a Tax or duty may be imposed on such Importation, not exceeding ten dollars for each Person.

No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.

In Article 1, Section 10 of the Constitution, the authorities regarding money and taxation for individual states are outlined. It states:

Section. 10. No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it’s inspection Laws; and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.

No State shall, without the Consent of Congress, lay any Duty of Tonnage, keep Troops, or Ships of War in time of Peace, enter into any Agreement or Compact with another State, or with a foreign Power, or engage in War, unless actually invaded, or in such imminent Danger as will not admit of delay.

You have probably noticed that nowhere in here was the term ‘legal tender’ used. Why? The intention was to allow anyone to issue coins and notes backed by gold or silver. In fact, foreign coins backed by gold and silver were accepted in the U.S. because 80 percent of money in circulation in the U.S. pre-1800 was foreign.

Centralisation or de-centralisation?


Episode 21 - The Web of Debt, 2 Beers with Steve

In this episode we talk with author Ellen H. Brown, author of Web of Debt, about the creation of money, public banking, and naked short selling.

Upcoming guests for Two Beers With Steve are:

Richard Heinberg - Author of nine books including The Party's Over, Peak Everything and the newly released Blackout

George Selgin - University of Georgia Proffesor of Economics and authro fo the book The Theory of Free Banking

Also we will speak with the Producer of the Money Masters film w/ Bill Still. [enphasis mine]

As always you can subscribe to get automatic downloads of teh show as soon as they are available.

Thanks

Show Notes

Money as Debt

Naked Short Selling

Exponential Growth

If the Dow is to follow the 1930s model....(Chart from BiiWii)


[dow.png]

Dr. Rand Paul Part 1(Video, H/T iDoctor)

Dr. Rand Paul Part 2 (Video, H/T iDoctor)

Dr. Rand Paul Part 3 (Video, H/T iDoctor)

Major Crisis Still Ahead, Past One Was Minor (Video H/T iDoctor)

Max Keiser Puts and Calls (Video)

Monday, September 21, 2009

Davos on the Edge / Market Thread 9.22.2009

  • Federal Reserve Accounts For 50% Of Q2 Treasury Purchases
  • Report: Strategic Defaults a "Growing Problem"
  • The U.S. Balance Sheet: Households See Net Worth Down by $12 Trillion Since Peak and Total Debt Floating in the Market of $33 Trillion.
  • Foreign Investors FLEE from U.S. debt (Possible Re-Post)
  • Obsolescence: Obama open to newspaper bailout bill
  • Silver Wheaton: the SAFE alternative to SLV
  • Fidelity Investments Thinks You Are A Dumb A$$ (Title from Michael Covel)
  • IMF to sell 403 tonnes of gold to boost lending to poor (H/T SaxPlaer00o1)

Economy

Federal Reserve Accounts For 50% Of Q2 Treasury Purchases

The degree of intermediation by the Federal Reserve in the issuance of US Treasuries hit a record in Q2, accounting for just under 50% of all net UST issuance absorption. This is a startling number, as the Fed's $164 billion in Q2 Treasury purchases dwarfs the combined foreign/household UST purchases of $101 billion and $29 billion, respectively, over the same time period. In fact, the Fed was a greater factor in UST demand than all three traditional players combined: Foreigners, Households and Primary Dealers, which amounted to a $158 billion in net Q2 purchases.

This dramatic imbalance puts a lot of question marks over how the upcoming hundreds of billions in incremental Treasury purchases will be soaked up, now that QE only has $15 billion of capacity for USTs: with Households lapping up risky assets it is unlikely they will look at Treasuries absent some dramatic downward move in equities, while Foreign purchasers, which many speculate are in a game of Mutual Assured Destruction regarding UST purchases, have in fact been aggressively lowering their purchases of Treasuries (from $159 billion in Q1 to $101 billion in Q2, an almost 40% decline in appetite!). Will the US make these purchases much more attractive come October when QE for USTs ends? And if so, what kind of rates are we talking about? One thing is certain: in terms of priorities of the Federal Reserve, keeping the equity market buoyant, is a distant second to ensuring successful auction after auction well into 2010. After all there is near $9 trillion in budget deficits that need financing over the next 10 years.

From Morgan Stanley:

Flow of funds: The Fed also released its flow of funds data for Q2 on September 17. The main points are that:

Households reduced Q2 Treasury purchases from their blistering pace in Q1

Foreign accounts reduced Q2 UST purchases as the Fed ramped up Q/E ops

Bank Q2 purchases remained anemic despite the fall in other lending options

Broker/dealer purchases were high but not sustainable, expect Q3 moderation

Report: Strategic Defaults a "Growing Problem"

From Kenneth Harney at the LA Times: Homeowners who 'strategically default' on loans a growing problem

National credit bureau Experian teamed with consulting company Oliver Wyman to identify the characteristics and debt management behavior of the growing numbers of homeowners who bail out of their mortgages with none of the expected warning signs, such as nonpayments on other debts.

...

[Some results:]

...

The number of strategic defaults is far beyond most industry estimates -- 588,000 nationwide during 2008, more than double the total in 2007. ...

The U.S. Balance Sheet: Households See Net Worth Down by $12 Trillion Since Peak and Total Debt Floating in the Market of $33 Trillion.

Current U.S. household net worth: $53 trillion

U.S. household real estate: $20 trillion

So real estate makes up nearly 40 percent of household net worth. Keep in mind that $20 trillion in real estate is secured by $10.4 trillion in mortgages many that are now going bad. Interestingly enough, if you look at the mortgage data it peaks around $10.54 trillion and has fallen to $10.4 trillion. Do we really think that only a few hundred billion in mortgages have gone bad? This is simply a reflection of banks not writing down option ARMs and other questionable assets.

The commercial real estate debt is going to hit and cause more losses in the years to come. Yet this is part of the trend that we will not be seeing in the Q3 report. And if you really want to see something frightening in the report, just look at total debt outstanding:

Foreign Investors FLEE from U.S. debt (Possible Re-Post)

Ben's magic printing-press – which supposedly can print up infinite amounts of new “money” without diluting all the trillions of existing U.S. dollars (i.e. without inflation).

The fact is that there will never be any more foreign demand for U.S. debt, unless/until U.S. interest rates rise high enough to compensate foreign investors for the high risk of default and the enormous inflationary pressures building up in the U.S. economy, as a result of the current reckless creation of new money and debt.

Just as U.S. perma-bulls have discovered the myth that foreign investors would “always” be willing to load up on more U.S. debt, these same deluded zealots are about to discover that there is nothing “magical” about Bernanke's printing press. The U.S. government may be able to grossly manipulate markets over a short-term basis, but it is utterly incapable of repealing the rules of arithmetic.

As any decent economic commentator can tell you, “inflation” is a monetary phenomenon.

Obsolescence: Obama open to newspaper bailout bill

Sen. Ben Cardin (D-Md.) has introduced S. 673, the so-called "Newspaper Revitalization Act," that would give outlets tax deals if they were to restructure as 501(c)(3) corporations. That bill has so far attracted one cosponsor, Cardin's Maryland colleague Sen. Barbara Mikulski (D).

Silver Wheaton: the SAFE alternative to SLV

To begin with, what most people don't know is that the vast majority of global silver production is in the form of byproducts of other mining operations – sometimes this silver occurs in primarily gold-based ores, but most of it is produced as a byproduct of base metals deposits. Thus, most silver production is of secondary importance to mining companies – making them very receptive to proposals from Silver Wheaton to pay them up front for the silver they will mine, but at a substantially discounted price.

Fidelity Investments Thinks You Are A Dumb A$$ (Title from Michael Covel)

[video:http://www.youtube.com/watch?v=U7atn5Zj5hY&feature=player_embedded]

IMF to sell 403 tonnes of gold to boost lending to poor (H/T SaxPlaer00o1)

A prime candidate could be China, which is sitting on the world's largest foreign exchange reserves, topping two trillion dollars, and has been seeking to diversify away from the dollar.

China in early September agreed to buy the first IMF bonds for about 50 billion dollars and has been on a gold-buying streak, increasing its gold reserves by 75 per cent from 2003 to 2008, according to official media.

The IMF said that if official demand is insufficient, it could conduct the gold sales "on-market in a phased manner over time," in line with an approach already followed by central banks.

The IMF would be constrained by the overall ceilings agreed by the central banks, which currently is 400 tonnes annually for the next five years, starting on September 27.

The IMF said it "will inform markets before any on-market sales commence" and "report regularly to the public on the progress with the gold sales."

In July, the IMF announced it would increase its lending to poor countries, mostly in Africa, to 17 billion dollars by 2014, including 8.0 billion over the next two years.

That compares with an annual average of one billion dollars in the 2006-2008 period to poor countries, and three billion dollars in the first half of 2009.

The IMF also had decided to cancel interest payments owed by poor countries through end-2011 and reform lending practices to make loans quickly available, at higher ceilings on amounts and with more flexible conditions.



Sunday, September 20, 2009

Davos on the Edge / Market Thread 9.21.2009

  • Tax the Dogs: State plots dog surcharge
  • Irene Aldridge Gets Death Threats Over Her Views On HFT, Pitches Book Again
  • OUTRAGE: TYING IT ALL TOGETHER
  • 95% Of Your Savings, IRA, Checking Account and Retirement will be Gone (Video from http://thecomingdepression.blogspot.com)
  • Elderly Bank Bandit: I Robbed to Pay Off My Mortgage
  • Faux capitalists look for the free lunch
  • ‘We still have the same disease' (H/T xRayMike79)
  • "Bailout" Money & Bankers: Corruption: Banks Lending UNSECURED To Terrorists?

Economy

Tax the Dogs: State plots dog surcharge

“The number of abandoned animals has gone through the roof over the past few years,” Jehlen said. “Shelters are euthanizing animals because they have too many.”

Jehlen pointed out that the MSPCA and several dog kennels and purebred pooch clubs throughout the state support the bill.

But French bulldog owner Megan Doerrer said she’s tired of the dog pile of state fees and taxes.

“I don’t want to pay more and I don’t think anyone else does either. It’s a weird time to choose to raise prices,” said Doerrer, 25, a math teacher who lives in the South End and was walking her dog Brady in Peters Park.

Clerks from cities and towns also oppose the additional fee, saying the state is snatching even more money away after cutting local aid.

Irene Aldridge Gets Death Threats Over Her Views On HFT, Pitches Book Again

Click to play

OUTRAGE: TYING IT ALL TOGETHER (Strong language, don't watch if offended)

[video:http://www.youtube.com/watch?v=UYqCm_D7pRE&feature=player_embedded]

95% Of Your Savings, IRA, Checking Account and Retirement will be Gone (Video from http://thecomingdepression.blogspot.com)

I started at the 2:20 minute point...

[video:http://www.youtube.com/watch?v=SLTa-ylnxsY]

Elderly Bank Bandit: I Robbed to Pay Off My Mortgage

"I had to get us out of this," the elderly man said Friday from the other side of the glass at San Diego central jail. "I've never done a bad thing in my life. But when you get desperate, I guess you throw all that sh-- out the window."

Listening to how Michael Casey Wilson of Santee tells it, a 17 percent mortgage, the threat of homelessness and a terminal health condition will turn a man to crime.

Wilson, 69, is accused of walking into the Bank of America branch in the 4100 block of El Cajon Boulevard in City Heights and handing a bank manager a demand note, saying he had a bomb. Prosecutors said he made off with $107,000 before he was caught lying on a front porch near the bank.

Faux capitalists look for the free lunch

The book has a chapter titled ‘Casino capitalism,’ which suggests that a simple solution to banks’ problems is to identify the banks that are insolvent and temporarily nationalise them. “Appoint new management, and give them six months to spin out 10 per cent of each of the separate viable pieces, with the taxpayer retaining the rest as passive investors. Bank of America can spin out five major pieces: BoA, Merrill, Countrywide, a toxic holding company, and the rest of its holdings,” Ritholtz recommends.

‘We still have the same disease' (H/T xRayMike79)

MT: They're all still here. Today we still have the same amount of debt, but it belongs to governments. Normally debt would get destroyed and turn to air. Debt is a mistake between lender and borrower, and both should suffer. But the government is socializing all these losses by transforming them into liabilities for your children and grandchildren and great-grandchildren. What is the effect? The doctor has shown up and relieved the patient's symptoms – and transformed the tumour into a metastatic tumour. We still have the same disease. We still have too much debt, too many big banks, too much state sponsorship of risk-taking. And now we have six million more Americans who are unemployed – a lot more than that if you count hidden unemployment.

"Bailout" Money & Bankers: Corruption: Banks Lending UNSECURED To Terrorists?

Can someone answer this question:

HOW IN THE HELL DO OUR BANKING REGULATORS ALLOW THIS SORT OF OUTRIGHT FRAUDULENT GRANTING OF CREDIT? $50,000 IN UNSECURED CREDIT LINES TO A FREAKING DELIVERY DRIVER WHO APPEARS TO BE A FOREIGN NATIONAL WITH NO ASSETS IN THE UNITED STATES AGAINST WHICH TO SECURE THE LOAN?

THE BANKS THAT WE BAILED OUT FAILED TO STOP THIS CRAP ALL THE WAY UP TO MARCH OF THIS YEAR AT LEAST (WHEN THIS GUY FILED BANKRUPTCY) AND PROBABLY STILL ARE DOING IT!

This is an OUTRAGE. Not only did this guy effectively stick the US Taxpayer with the $50,000 in debt it appears he may have been using the freaking money to plot some sort of terrorist attack as part of an Al-Quaida cell INSIDE THE UNITED STATES?

TO PUT THIS IN ONE SENTENCE: BANKS THAT WE BAILED OUT WITH TAXPAYER MONEY ARE FUNDING TERRORISTS INSIDE THE US?!

And don't try to tell me this is an "isolated incident" either. Some of these banks have had active programs for years to give loans and other services to undocumented illegal aliens. Wells Fargo even advertised their willingness to lend to people in this nation illegally:

It's the American dream -- buying a home for your family. And now you don't have to be in the country legally to own one.

Wells Fargo is first major California lender to offer home loans to illegal immigrants, 10News reported.

"We're not required to ask the immigration status of any of our customers. That is the responsibility of the federal government," Wells Fargo bank representative Jerry Ruiz said.

Bank America has provided credit cards for years to illegal immigrants and others "without social security numbers", requiring only that they have a checking account for three months. BAC will also extend mortgages to these people - individuals who could be deported at any time, sticking the bank (well no, sticking the taxpayer, since we bailed them out!) with the loss.

Oh, and if you want an ACORN connection to all this? Here it is - this time with CITIBANK, who only exists today because of taxpayer largesse:

The local program, which uses tax identification numbers instead of Social Security numbers, is similar to programs run by small lenders – and two state agencies – around the country that have distributed millions of dollars to undocumented immigrants over the past few years.

“There is a huge untapped market out there, but it is a controversial program,” said Sarah Lumbert, office director of San Diego's ACORN Housing Corp., part of a national group working with Citibank to provide tax-ID loans.

Isn't that special?

Not only is the taxpayer bailing out banks that have made loans to illegal immigrants but now it appears that the taxpayer has been bailing out banks WHO EFFECTIVELY GAVE MONEY TO AL-QUAIDA TO FUND A TERRORIST ATTACK IN THE UNITED STATES!