It's about power
by Ted Rudow III,MA ( Tedr77 [at] aol.com )
Wednesday Mar 25th, 2009
The global economic crisis isn't about money - it's about power. How Wall Street insiders are using the bailout to stage a revolution
That guy — the Patient Zero of the global economic meltdown — was one Joseph Cassano, the head of a tiny, 400-person unit within the company called AIG Financial Products, or AIGFP. Cassano, by contrast, was just a greedy with a knack for selective accounting who ran his scam right out in the open, thanks to Washington's deregulation of the Wall Street casino. "It's all about the regulatory environment," says a government source involved with the AIG bailout. A CDO is like a box full of diced-up assets. They can be anything: mortgages, corporate loans, aircraft loans, credit-card loans, even other CDOs. So as X mortgage holder pays his bill, and Y corporate debtor pays his bill, and Z credit-card debtor pays his bill, money flows into the box.The key idea behind a CDO is that there will always be at least some money in the box, regardless of how dicey the individual assets inside it are... What the inventors of the CDO did is divide up the box into groups of investors and put that $10 into its own level, or "tranche." They then convinced ratings agencies like Moody's and S&P to give that top tranche the highest AAA rating — meaning it has close to zero credit risk.
A demonstration to those in high standing of who is really the boss. Even the big money boys are as pawns in the hands of the puppeteer. The puppeteer's total power works by fear. The puppeteer sends a strong signal that it is indeed he who holds the bag and manipulates the strings, and all must yield to his gestures and signals, else they will be tangled up and put out of commission. his ability to keep the marionettes moving and flowing and dancing in apparent sync and coordination.
Ted Rudow III,MA