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raja
12-28-09, 12:54 PM
J.S. Kim is the founder of SmartKnowledgeU™, an independent investment research and wealth consulting firm. J.S. accurately called the recent global financial crisis, sharing his thoughts on his investment blog (http://www.theundergroundinvestor.com/), to his subscribers, and in a series of YouTube videos (http://www.youtube.com/user/smartknowledgeu). His articles have been reprinted online by Reuters, the New York Times, USA Today, the Wall Street Journal, the Financial Times and the International Business Times.


Ilene: What did you learn while working in the banking industry?
J.S.: I was seeing an unsettling picture of industry excesses. I saw problems developing, for example, with mortgages – no document loans or liar loans. If the loan application didn’t support a mortgage, the loan might be denied at first, but then it was sent through a special process to convert it to a no document loan. Every bank did it. This was not specific to Wells Fargo. All the major U.S. banks had this “don’t ask, don’t tell” policy, so they could say they didn’t know. They either should have known from the start that the mortgages couldn’t be paid back, or they didn’t care because they were making huge commissions up front. So they would make the loans and then slice and dice them up and quickly sell them off.

Ilene: The banks knew what they were doing and knew they’d be bailed out as well?

J.S.: Yes, this happened before in the 1920s and I believe they knew it would happen again. The process of taking the clients’ money and making loans that are gambles (heads I win, tails the taxpayer pays) has a history that goes back to the Great Depression. They have the best of both worlds. The reward for risks stays with the banks top executives, but losses are shifted to the taxpayers.

This is a pattern that happens over and over again – the robbing of a nation’s wealth for the benefit of the elite banking oligarchs. This is nothing new, and nobody should have been surprised by ex-Goldman Sachs CEO and then US Treasury Secretary’s bait and switch with the $700+ billion bailout plan in which he promised to use the money to help American homeowners stay in their homes. Paulson promptly reneged on the deal as soon as Congress passed the bill and gave the money to his banking buddies.

Ilene: So do you believe it was a conspiracy to rid the population of wealth and transfer it to the bankers?

J.S.: I really don’t subscribe to conspiracy theories. Rather the system enables the bankers to do what they do. The banking industry and the media take the tactic of calling people who believe that cycles of boom and bust are intentional, “conspiracy theorists.” It’s the simplest way for the bankers to keep their power by calling everyone that exposes their immorality and greed as crazy conspiracy loonies. As Simon Johnson said in his article, “The Quiet Coup (http://www.theatlantic.com/doc/200905/imf-advice)” (The Atlantic, May 2009), the bankers have taken over all major world governments so the public never receives the truth. Instead, we have to look for it.

Education has been taken over by the moneyed elites as well. Keynesian economics, not the Austrian theory, is the predominantly accepted theory and the one taught in every major economics school today. I graduated from the University of Texas at Austin with my MBA, but in that time, I hadn’t learned anything truthful about economics. What I learned since is in almost direct opposition to what my school taught.

The central bankers’ reach extends to academia and permeates the field. There was a good article on this recently in Huffington Post. This is not conspiracy. This is stifling of an opposing viewpoint, the one that would enlighten the world to the fraud of our global monetary system and our global banking system.

Full article here (http://philsbackupsite.wordpress.com/2009/12/21/interview-with-j-s-kim/)

cjppjc
12-28-09, 05:52 PM
US Treasury Secretary’s bait and switch with the $700+ billion bailout plan in which he promised to use the money to help American homeowners stay in their homes. Paulson promptly reneged on the deal as soon as Congress passed the bill and gave the money to his banking buddies.


I wasn't aware Paulson promised homeowners relief.

marvenger
12-28-09, 06:40 PM
they teach neoclassical economics not keynesian too.